Fitch cuts PetroAmazonas notes

Fitch Ratings said it downgraded the rating of the senior notes issued by Empresa Publica de Exploracion y Explotacion de Hidrocarburos Petroamazonas EP (PetroAmazonas) due in February and November 2020 to B-/RR4 from B/RR4.

The agency said the action follows Fitch’s recent downgrade of Ecuador to B-/stable from B/negative.

The notes are fully covered by a sovereign guarantee, which constitutes a general, direct, unsecured, unsubordinated and unconditional obligation of the sovereign.

The downgrade of Ecuador's ratings reflects evidence of increased fiscal financing constraints amidst a steady deterioration of Ecuador's key metrics, including rapidly rising government debt and interest burden as well as weaker economic growth performance relative to the B median, Fitch said.

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