Fitch Rates Ecuador's New Bond Issue 'B(EXP)'

NEW YORK--()--Fitch Ratings has assigned Ecuador's forthcoming USD-denominated global bonds an expected rating of 'B(EXP)'. The final rating is contingent on the receipt of final documentation conforming to information already received. The expected rating is in line with Ecuador's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'B'/Stable Outlook.

The proceeds will be used for budgetary purposes in terms of government programs and infrastructure. Ecuador is returning to the international capital market after the 2008 default and for the first time since 2005.

KEY RATING DRIVERS

Ecuador's ratings reflect the country's continued growth, monetary and financial stability underpinned by dollarization, and a steady easing of external and fiscal financing risks as a result of still favorable international oil prices, improved prospects in the oil sector, and continued availability of bilateral financing from China and multilaterals.

Ecuador's creditworthiness balances the sovereign's relatively strong fiscal and external solvency ratios and high GDP per capita in relation to peers against key credit weaknesses such as a weak record of debt service, high commodity dependence, and limited sources of financing for the sovereign and the economy.

RATING SENSITIVITIES

The rating would be sensitive to any changes in Ecuador's long-term foreign currency IDR. Fitch upgraded Ecuador's ratings to 'B' with a Stable Outlook on Oct. 18 2013.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Sovereign Rating Methodology' (Aug. 13, 2012);

--'Country Ceilings' (Aug. 9, 2013).

Applicable Criteria and Related Research:

Country Ceilings

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715618

Sovereign Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685737

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=834601

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Contacts

Fitch Ratings
Primary Analyst
Erich Arispe, +1 212-908-9165
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst
Cesar Arias, +1 212-908-0358
Associate Director
or
Committee Chairperson
Shelly Shetty, +1 212-908-0324
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Erich Arispe, +1 212-908-9165
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst
Cesar Arias, +1 212-908-0358
Associate Director
or
Committee Chairperson
Shelly Shetty, +1 212-908-0324
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com