Fitch rates Ecuador’s social bond B

Fitch Ratings said it assigned Ecuador’s $400 million partially-guaranteed social bond an expected B rating. The social bond will benefit from a $300 million partial credit guarantee provided by the Inter-American Development Bank for scheduled debt service payments.

The expected rating on the social bond represents a one-notch uplift above Ecuador’s long-term foreign-currency issuer default rating of B-, reflecting Fitch’s assessment partially-guaranteed protected issuance would benefit from a higher recovery rate than unsecured obligations of Ecuador in the event of a default by the sovereign.

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