Bukele and Bitcoin Do Not Care
File this under today’s laughable headlines – Fitch “downgrades” El Salvador from a B to a CCC rating due to “policy unpredictability” and “adoption of Bitcoin as legal tender” lol
Fitch lowers El Salvador’s rating due to Bitcoin adoption
“American credit rating agency Fitch Ratings has lowered El Salvador’s long-term Issuer Default Rating from B- to CCC, mentioning “policy unpredictability” and the “adoption of Bitcoin as legal tender” as some of the factors that led to the downgrade.
Apart from these, the statistical rating organization explained that reliance on short-term debt, an $800-million Eurobond payment due in January 2023, and a high fiscal deficit get in the way of a better rating for the country.
Additionally, El Salvador’s increased short-term debt is perceived by Fitch to cripple the government’s ability to pay its overall debts, which expands the risks of a roll-over. With nearly $1.3 billion due in August, September and October, Fitch mentions that financial constraints will be more difficult for the country to deal with.”