Agencies Chop Ecuador

Agencies Chop Ecuador

Corporate & Sovereign Strategy

S&P has cut its sovereign rating on Ecuador to CCC minus from B minus and Moody’s chopped to Caa1 from B3, both implying a very high default probability. The moves were motivated by the government’s announcement Friday that it planned to miss a $31m payment due the following day, and use a 30-day grace period to determine whether to pay. “The combination of sharply lower oil prices and an expected hit to economic growth resulting from lower exports and remittances is expected to pressure fiscal

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