By Marc Jones
LONDON (Reuters) – El Salvador’s adoption of bitcoin as authorized tender has rapid unfavorable implications for it credit standing S&P World mentioned on Thursday.
S&P mentioned the primary dangers have been that it might threaten its hopes of securing a help programme with the Worldwide Financial Fund, enhance fiscal vulnerabilities and damage banks by creating foreign money mismatches after they dish out loans.
“The dangers related to the adoption of bitcoin as authorized tender in El Salvador appear to outweigh its potential advantages,” S&P mentioned. “There are rapid unfavorable implications for (the)
S&P at present charges the central American nation at B- with a ‘secure’ outlook. Moody’s minimize its El Salvador score to Caa1, its equal of 1 score notch beneath B-, on the finish of July. It additionally saved the score on a downgrade warning.
(Reporting by Marc Jones; enhancing by Rodrigo Campos)