Moody's lifts Ecuador bonds to Caa3

Moody's Investors Service said it changed the rating on Ecuador's outstanding global bonds to Caa3 with a stable outlook from Ca with a developing outlook, while the ratings on its defaulted bonds were moved to C, reflecting recovery rates of around 35% for investors.

The foreign currency ceilings on bonds and deposits are at Caa2, with a stable outlook.

"Ecuador's very poor track record of debt repayment, defaulting on two of its global bonds while remaining current on the third (the 2015s), and frequent statements about prioritizing social and other expenditures over debt payment suggest that the risk of default on the remaining bonds still remains high," said Alessandra Alecci, a Moody's vice president and sovereign analyst for Ecuador, in a news release.

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