According to a recent report by Moody's, El Salvador is more likely to secure a new deal with the International Monetary Fund (IMF) than to receive multiple rating upgrades. The report suggests that the country's economic situation may prompt the need for additional financial support from the IMF rather than immediate improvements in its credit ratings.
El Salvador has been facing economic challenges exacerbated by the COVID-19 pandemic, with high levels of public debt and limited fiscal space. Moody's analysis indicates that while the country may not see a significant improvement in its credit ratings in the near term, it is in a position to negotiate a new agreement with the IMF to address its financial vulnerabilities.
