Fitch downgrades Ecuador

Fitch Ratings said it downgraded Ecuador's long-term foreign currency issuer default rating to CCC+ from B-. The agency typically does not assign outlooks to sovereigns with a CCC+ rating or below.

“The downgrade of Ecuador's ratings reflects heightened financing risks emanating from a significant deterioration in fiscal accounts, with limited scope for additional local market financing, and a challenging external financing backdrop. Liquidity constraints have resulted in a sizeable build-up in arrears since YE 2022.

“There has been an increase in political risk and governability challenges, and regardless of the outcome of upcoming general elections, Fitch does not anticipate significant reform progress to address Ecuador's fiscal and financing challenges in the remaining 18-month presidential term. This will continue to hinder the sovereign's market access and ability to secure an IMF successor program,” Fitch said in a press release.

Ecuador is scheduled to hold elections on Sunday.

© 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.