Ecuador Debt Upgraded By Moody's (MCO)

Moody's Investors Service MCO upgraded Ecuador's government bonds today to Caa2, up from Caa3. Despite the upgrade, this is still the fourth lowest rating that Moody's uses. The rating agency said Ecuador will be able to attract external funds to finance its fiscal deficit, and it also cited improving oil production rates. The outlook is stable. Ecuador defaulted on debt at the end of 2008, during the financial crisis. "The government's ability to sign new oil contracts after almost two years of negotiations should also help correct the downward oil output trend of the last three years, providing support to the balance of payments and the fiscal accounts," said Patrick Esteruelas, Moody's lead analyst for Ecuador's ratings.