Fitch sinks Ecuador to RD

Fitch Ratings said it downgraded Ecuador's long-term foreign-currency issuer default rating to RD from C.

“The issue ratings on senior unsecured foreign-currency bonds affected by the government's ‘consent solicitations’ have been downgraded to D and withdrawn for the following reason: bankruptcy of the rated entity, debt restructuring or issue/tranche default. Issue ratings on unaffected bonds have been affirmed at CC and withdrawn for the following reason: no longer considered by Fitch to be relevant to the agency's coverage,” the agency said in a press release.

Commercial bondholders agreed to defer bond payments by fourth months. Fitch said it considers the consent solicitation to be the “first step in a distressed debt exchange.”

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