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Reuters
Reuters
Business

S&P says it could downgrade El Salvador in 6-18 months

FILE PHOTO - A general view of the city of La Union and the Conchagua Volcano, projected site for the Bitcoin City according to El Salvador's President Nayib Bukele, in La Union, El Salvador August 20, 2022. REUTERS/Jose Cabezas

S&P Global Ratings said on Friday it could cut El Salvador's already negative credit rating within six to 18 months if it does not make "adequate progress" on debt reduction, days after the government announced plans to buy back sovereign bonds.

S&P maintained El Salvador's "CCC-plus" rating, seven notches into non-investment speculative grade territory, four days after its government said it would buy back up to $360 million of two sovereign bonds, at what S&P valued just marginally above market prices.

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