Fitch: Ecuador on watch

Fitch Ratings said it has placed Ecuador's long-term foreign currency issuer default rating of CCC on rating watch negative to reflect a reasonable probability of near term downgrades.

Ecuador's issuer default rating already incorporates the risk that default is a real possibility in the near term, particularly in light of ongoing concerns about the government's willingness to pay its obligations, the agency noted.

In addition, Fitch said that the following individual bond ratings are downgraded: global 2012 & 2030 uncollateralized foreign currency bonds to CCC-/RR5 from CCC/RR4. It affirmed the following ratings: short-term foreign currency issuer default rating at C; country ceiling at B-; collateralized foreign currency par and discount Brady bonds at CCC+/RR3; and global 2015 at CCC/RR4.

Fitch noted that the placement on rating watch negative from stable outlook reflects the government's decision to halt interest payments on the global 2012 bond that was due on Nov. 15 to asses the 'legality' of Ecuador's outstanding external debt.

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