Fitch gives B to Ecuador bonds

Fitch Ratings said it assigned Ecuador's forthcoming dollar-denominated global bonds an expected rating of B(EXP).

The expected rating is in line with Ecuador's long-term foreign currency issuer default rating of B/stable outlook.

Proceeds will be used for budgetary purposes in terms of government programs and infrastructure. Ecuador is returning to the international capital market after the 2008 default and for the first time since 2005.

Fitch said Ecuador's ratings reflect the country's continued growth, monetary and financial stability underpinned by dollarization and a steady easing of external and fiscal financing risks as a result of still favorable international oil prices, improved prospects in the oil sector and continued availability of bilateral financing from China and multilaterals.

Ecuador's creditworthiness balances the sovereign's relatively strong fiscal and external solvency ratios and high GDP per capita in relation to peers against key credit weaknesses such as a weak record of debt service, high commodity dependence and limited sources of financing for the sovereign and the economy, the agency said.

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