Fitch cuts PetroAmazonas notes

Fitch said it downgraded the rating of the senior notes issued by Empresa Publica de Exploracion y Explotacion de Hidrocarburos Petroamazonas EP (PetroAmazonas) approximately $300 million of senior notes due in November 2020 to CCC-/RR4 from B-/RR4.

The agency said the action follows Fitch’s recent downgrade of Ecuador to CCC from B-/stable.

The notes are fully covered by a sovereign guarantee, which constitutes a general, direct, unsecured, unsubordinated and unconditional obligation of the sovereign.

The downgrade of Ecuador's ratings by one notch to CCC reflects heightened risks to sovereign debt repayment capacity following the sharp fall in oil prices, loss of capital market access and developments hindering timely disbursement of funds from the IMF and other multilaterals.

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