Moody’s upgrades Ecuador to B3

Moody's Investors Service said it upgraded Ecuador's issuer and senior unsecured ratings to B3 from Caa1 and maintained the stable outlook.

The key drivers of the upgrade are: An improvement in Ecuador's credit profile that clearly differentiates it from Caa-rated sovereigns given stronger credit metrics that are more in line with B-rated peers; incentives that effectively increase Ecuador's willingness to pay its debt obligations, derived from the country's renewed access to international capital markets; and sufficient fiscal flexibility to manage the effect of an oil price shock, which should only have a moderate impact on sovereign creditworthiness, the agency said.

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