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S&P ratings agency deems El Salvador to be ‘selective default’

Wednesday, October 4, 2017

US ratings agency Standard & Poor's has downgraded El Salvador's credit standing to "selective default" after the country's parliament approved a reform to restructure sovereign debt racked up over pensions.

The restructuring means El Salvador has effectively "selectively defaulted on a specific issue or class of obligations but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner," according to the agency.

Source: AFP