Ecuador upgraded by Fitch with bond buy-back

Ecuador’s long-term issuer default rating was raised from restricted default to CCC on Fiday (4 September) by Fitch Ratings.

The sovereign was downgraded to restricted default status in December 2008 when the government announced that it would not be servicing its external bond debt. On 11 June 2009, Ecuador bought back 81.3% of the 2012 notes ($414.4 million) and 92.8% of the 2030 notes (approximately $2.5 billion) through a reverse Dutch auction process.

Fitch analysts continue to see deteriorating payment capacity in Ecuador, which relies on oil revenues.