Fitch: Ecuador position manageable

Fitch Ratings said in a report that while Ecuador's issuer default rating of CCC indicates that default is a real possibility over the rating horizon, it believes at this time that the government's manageable financial position provides a sufficient counterbalance to Ecuador's key credit weakness, which is its willingness to pay.

"Fitch believes that it is not in the government's short-term interest to introduce volatility, or a confidence crisis, into the economy stemming from a default, which could hurt its electoral prospects," according to Theresa Paiz-Fredel, senior director in Fitch's Latin America sovereign group.

Fitch said its recent rating action on Ecuador is due to a perceived reduction in risk of a potential distressed debt exchange in the near term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.