Moody's cuts El Salvador’s credit rating to negative

Moody's Investors Service cut its long-term foreign currency credit rating on El Salvador one notch to Ba2 from Ba1.

The ratings agency cited continued deterioration in El Salvador’s financial strength and reduced fiscal flexibility. The outlook on the credit rating was changed to stable from negative.

El Salvador's dollarized economy means it has limited ability to implement monetary policy to meet changing economic conditions.

Original source: Reuters