Rating Firm Gives Ecuador B status

fortmilltimes.com reported Fitch Ratings has affirmed Ecuador’s long-term foreign currency Issuer Default Rating (IDR) at ‘B’. The issue ratings on Ecuador’s senior unsecured foreign bonds are also affirmed at ‘B’. The Rating Outlook on the long-term IDR is Stable. The Country Ceiling is affirmed at ‘B’ and the short-term foreign currency IDR at ‘B’.

KEY RATING DRIVERS

The rating affirmation and Stable Outlook reflects the following factors:

HOTELS/LODGING IN ECUADOR

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Ecuador’s five-year average growth of 5% is expected to outperform regional peers and the ‘B’ median of 4.3% in 2014. However, there are downside risks to economic activity. Uncertainty related to the financial reform has weighed on consumer confidence and private investment. Moreover, softer oil prices and tightening external financing conditions could delay the execution of an ambitious public investment plan in infrastructure, hydropower generation and oil refining totaling 36% of GDP in 2014-2017. Fitch forecasts that growth could ease to 4.1% in 2014-2016. Read Article