Ecuador Seen Pushing for Harsh Haircut

Ecuador Seen Pushing for Harsh Haircut

Corporate & Sovereign Strategy

Moody's has downgraded Ecuador to Ca with a developing outlook from Caa1 on review for possible downgrade and expects significant losses for bondholders. "The new Ca rating for Ecuador, the second lowest in Moody's rating scale, expresses the likelihood that expected losses will be very high to bondholders, placing Ecuador's default much closer to that of Argentina in 2002 than that of Uruguay in 2003," says Moody's senior analyst Alessandra Alecci. "We expect negotiations with bondholders to be

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