Fitch affirms Ecuador

Fitch Ratings said it affirmed and removed from rating watch negative the long-term foreign currency issuer default rating of Ecuador at CCC, the country ceiling at B- and the short-term issuer default rating at C.

The outlook is stable.

In addition, the agency said that the following bond ratings were affirmed: uncollateralized foreign currency bonds at CCC/RR4 and collateralized foreign currency Par and Discount Brady bonds at CCC+/RR3.

The stable outlook reflects a perceived reduction in risk of a potential distressed debt exchange in the near term, Fitch said.

"While Ecuador's CCC issuer default rating indicates that default is a real possibility over Fitch's rating horizon, Fitch believes at this time that the government's manageable financial position provides a sufficient counterbalance to Ecuador's key credit weakness, which is its willingness to pay," said Theresa Paiz Fredel, senior director, sovereigns.

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