This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
El Salvador Upgraded to B3 by Moody’s
November 27, 2024
El Salvador was upgraded by a notch to B3 from Caa1 by Moody’s. The upgrade reflects El Salvador’s reduced near-term external debt repayment risks, with external maturities remaining low through 2029. In October, the sovereign repurchased a portion of its global bonds, spending $922mn to buy back $1.03bn in bonds, saving $109mn. The operation, funded via a loan, is expected to save over $352mn in total. In November, El Salvador conducted a further liability management operation with issuance of a $1bn bond, repurchasing bonds and contributing to general budgetary purposes. These operations have improved market sentiment, reduced spreads on its bonds, and decreased external bond amortizations. Additionally, the 2025 budget outlines a fiscal consolidation strategy, focusing on austerity measures and reducing the public wage bill to support debt sustainability. According to Moody’s, El Salvador’s non-financial public sector deficit is forecast to narrow further, reaching 1.1% of GDP in 2025, helping to lower financing needs and alleviate liquidity pressures in the coming years.
Its dollar bonds traded stable with its 6.375% 2027s at 99.36, yielding 6.69%.
Go back to Latest bond Market News
Related Posts:El Salvador’s Dollar Bonds Rally on Debt Swap Tender Offer
October 8, 2024
El Salvador Announces Tender Offer Results
October 14, 2024
El Salvador Completes $1bn Debt-for-Nature Swap Deal
October 17, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.