Moody's boosts Ecuador

Moody's Investors Service said it upgraded Ecuador's foreign-currency ratings to B3 from Caa2.

The outlook is stable.

"The significant buildup of liquidity as a result of the oil windfall has eased Ecuador's chronic financing difficulties," Alessandra Alecci, a Moody's vice president, said in a written statement.

"Despite threatening rhetoric early last year, the government has, to the contrary, remained current on all obligations and adopted a pragmatic approach to debt management," Alecci said.

"The new fiscal framework, while positive in some ways, has eliminated the oil savings funds and introduced a significant degree of discretion over expenditures while increasing the exposure to the oil cycle. This is an issue of concern for creditworthiness, particularly given Ecuador's traditionally weak institutions," Alecci added.

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