S&P 500   3,968.13 (+1.71%)
DOW   31,829.93 (+1.82%)
QQQ   291.78 (+1.07%)
AAPL   142.12 (+3.29%)
MSFT   259.13 (+2.60%)
FB   195.22 (+0.87%)
GOOGL   2,220.17 (+1.93%)
AMZN   2,138.33 (-0.63%)
TSLA   670.89 (+1.05%)
NVDA   167.54 (+0.36%)
BABA   86.91 (+0.14%)
NIO   15.78 (-4.01%)
AMD   94.14 (+0.68%)
CGC   5.21 (-5.62%)
MU   69.13 (+0.33%)
T   20.75 (+1.72%)
GE   75.43 (+0.24%)
F   12.82 (+2.56%)
DIS   105.58 (+3.09%)
AMC   11.55 (-3.99%)
PFE   52.74 (+0.51%)
PYPL   80.76 (+0.27%)
NFLX   185.84 (-0.27%)
S&P 500   3,968.13 (+1.71%)
DOW   31,829.93 (+1.82%)
QQQ   291.78 (+1.07%)
AAPL   142.12 (+3.29%)
MSFT   259.13 (+2.60%)
FB   195.22 (+0.87%)
GOOGL   2,220.17 (+1.93%)
AMZN   2,138.33 (-0.63%)
TSLA   670.89 (+1.05%)
NVDA   167.54 (+0.36%)
BABA   86.91 (+0.14%)
NIO   15.78 (-4.01%)
AMD   94.14 (+0.68%)
CGC   5.21 (-5.62%)
MU   69.13 (+0.33%)
T   20.75 (+1.72%)
GE   75.43 (+0.24%)
F   12.82 (+2.56%)
DIS   105.58 (+3.09%)
AMC   11.55 (-3.99%)
PFE   52.74 (+0.51%)
PYPL   80.76 (+0.27%)
NFLX   185.84 (-0.27%)
S&P 500   3,968.13 (+1.71%)
DOW   31,829.93 (+1.82%)
QQQ   291.78 (+1.07%)
AAPL   142.12 (+3.29%)
MSFT   259.13 (+2.60%)
FB   195.22 (+0.87%)
GOOGL   2,220.17 (+1.93%)
AMZN   2,138.33 (-0.63%)
TSLA   670.89 (+1.05%)
NVDA   167.54 (+0.36%)
BABA   86.91 (+0.14%)
NIO   15.78 (-4.01%)
AMD   94.14 (+0.68%)
CGC   5.21 (-5.62%)
MU   69.13 (+0.33%)
T   20.75 (+1.72%)
GE   75.43 (+0.24%)
F   12.82 (+2.56%)
DIS   105.58 (+3.09%)
AMC   11.55 (-3.99%)
PFE   52.74 (+0.51%)
PYPL   80.76 (+0.27%)
NFLX   185.84 (-0.27%)
S&P 500   3,968.13 (+1.71%)
DOW   31,829.93 (+1.82%)
QQQ   291.78 (+1.07%)
AAPL   142.12 (+3.29%)
MSFT   259.13 (+2.60%)
FB   195.22 (+0.87%)
GOOGL   2,220.17 (+1.93%)
AMZN   2,138.33 (-0.63%)
TSLA   670.89 (+1.05%)
NVDA   167.54 (+0.36%)
BABA   86.91 (+0.14%)
NIO   15.78 (-4.01%)
AMD   94.14 (+0.68%)
CGC   5.21 (-5.62%)
MU   69.13 (+0.33%)
T   20.75 (+1.72%)
GE   75.43 (+0.24%)
F   12.82 (+2.56%)
DIS   105.58 (+3.09%)
AMC   11.55 (-3.99%)
PFE   52.74 (+0.51%)
PYPL   80.76 (+0.27%)
NFLX   185.84 (-0.27%)

Moody’s Downgrades El Salvador’s Debt, The First Country To Adopt Bitcoin

Last updated on Sunday, May 8, 2022 | 2022 ValueWalk

Financial services company Moody's Corporation (NYSE:MCO) downgraded El Salvador's debt rating by two notches, from “Caa3” to “Caa1”, due to a higher probability of default. El Salvador became the first country in the world to adopt bitcoin (BTC) as a legal tender.

Downgrade

As reported by Bloomberg,  Moody's Investors Service has downgraded El Salvador’s debt and stated: “It is due in large part to the lack of a credible financing plan, a factor that increases credit risks stemming from restricted market access due to El Salvador's distressed foreign debt yields.”

Q1 2022 hedge fund letters, conferences and more

According to the media outlet, the rating agency fears large material losses for investors, given the upcoming bond repayments, since El Salvador currently has a debt or non-payment of $800 million, which expires in 2023.

With the adoption of BTC as legal tender, El Salvador announced the construction of Bitcoin City, as well as the issuance of BTC bonds as an alternative to obtain resources. However, in mid-March, President Nayib Bukele announced a delay in the bond issuance without an exact date.

Nayib Bukele’s government has not commented on the matter, nor clarified how it will pay the next due dates. Weeks ago, it mentioned that the projects related to BTC were separate and would not affect the country's finances.

BTC Bonds

In addition, El Salvador's dollar bonds widened up to 2,200 points —even more than those of the U.S.— which would reflect the dependence of the country's government on short-term debt, which increases risks, according to Moody's.

As per the Salvadoran newspaper Contrapunto, Moody's also highlighted that it does not see a financing plan, which commits the country to acquire additional credit risks, which increases the "default risk."

However, it pointed out that the government eased liquidity pressures with a 26.8% increase in tax revenue in 2021.

Nayib Bukele said on March 24 that the government delayed the issuance of “Bitcoin Bonds” of what could be the world's first bitcoin-backed bond to address a reform that must first be sent to Congress.

“The brief delay in issuance is only because we are prioritizing the internal pension reform and we have to send that to Congress before (sic),” Bukele tweeted.


7 Small-Cap Stocks that Present Long-Term Growth Opportunities

Before you invest in small-cap stocks, you should be comfortable with the risk that they present. By definition, a small-cap stock is one that has a market capitalization of less than $2 billion. But this leaves them prone to volatility. And when the market goes through a sell-off or correction these stocks can suffer steep losses.

Those concerns are being amplified as the Federal Reserve is pledging to raise interest rates as part of their efforts to implement a less accommodative monetary policy. And that means if your investment timeline ends in the next few years, you may want to look elsewhere.

However, if you have a longer time horizon, quality small-cap stocks have historically provided investors with an opportunity for high growth.  In this special presentation, we're looking at seven small-cap stocks. Some have an interesting story that is playing out right now. Others have a narrative that should provide a catalyst for the stock once the economy is back on firm footing.

Here are seven small-cap stocks we believe deserve a closer look.



View the "7 Small-Cap Stocks that Present Long-Term Growth Opportunities".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Moody's (MCO)
3.2431 of 5 stars
$294.74+1.9%0.95%27.91Buy$378.64
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