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Fitch Downgrades El Salvador’s Foreign Currency Issuer Default Rating

ByLouis Adams

Sep 19, 2022 #Bitcoin
Reading time: < 1 minute

International rating agency Fitch Ratings has recently downgraded El Salvador’s long-term issuer default rating in foreign currency from “CCC” to “CC.”

According to the company, one of the reasons for the country’s limited market access and problems with bond redemption was the recognition of BTC as a legal means of payment.

Fitch Ratings has noted:

“The policy controversy surrounding the government’s adoption of bitcoin reduced the likelihood of a timely deal with the IMF.”

The organization has repeatedly criticized the decision of the country’s authorities, and in January recommended depriving Bitcoin of the status of legal tender. In 2021, El Salvador requested a $1.3 billion loan from the IMF.