The downgrade is also due to higher financing risks stemming from the nation's greater reliance on short-term debt and a fiscal deficit at high levels, the agency noted in its report.

Likewise, the sovereign debt remains with the lowest rating of this type in Central America within the Fitch Ratings scale, below Nicaragua (B-) and Costa Rica (B), Guatemala (BB-) and Panama (BBB-), with good credit quality.

Fitch said that last year's adoption of Bitcoin as legal tender has added uncertainty about the potential of an International Monetary Fund (IMF) program that will unlock financing for the US$800 million 2023 bond payment.

The rating agency also warned about a high concentration of power of the president, which, it said, has increased unpredictability about the direction of public policies.

The "CCC" rating means that a default exists as a "real possibility", and the ability to comply depends on favorable economic conditions.