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Fitch raises El Salvador outlook on fiscal efforts

Monday, August 1, 2011

\ Fitch Ratings lifted its outlook on El Salvador's rating to stable, reflecting the Central American government's process in terms of fiscal consolidation efforts and expected broad stabilization of the public debt burden.\ \ The ratings agency's issuer default rating on El Salvador currently stands at BB, which is two levels into junk.\ \ Fitch noted the nation hasn't tapped International Monetary Fund stand-by resources, highlighting the stability of the financial system despite unfavorable economic conditions. On the other hand, low growth and a relatively high debt burden constrain El Salvador's ratings.\ \ Original source: Dow Jones\ \ \ \