Fitch Raises Salvador Outlook

Fitch has raised its outlook on El Salvador to stable from negative, and affirmed its BB rating. The revision reflects the government’s progress on fiscal consolidation, the expected stabilization of its public debt burden, and its commitment to comply with the precautionary IMF Stand-by Agreement (SBA). The country recorded a deficit of 4.2% of GDP in 2010, significantly lower than the 5.6% 2009 deficit and below the 4.8% benchmark set under the IMF’s SBA.