S&P puts Ecuador on negative watch

Standard & Poor's said it placed its CCC+ long-term sovereign credit rating on the Republic of Ecuador on CreditWatch with negative implications.

The action reflects increased risk surrounding the government's already-precarious financing scenario over the coming year, the agency said.

The rating could be downgraded if the current impasse results in greater financial stress for the sovereign, S&P said. Conversely, the rating could be removed from CreditWatch if the negative fiscal impact appears to be more manageable than expected and/or if the political impasse is resolved quickly and effectively, resulting in a rapid resumption of oil production.

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