Moody’s upgraded Ecuador´s rating

The rating agency Moody’s upgraded the credit rating yesterday Ecuador, passing of CAA1 to B3, said the Ministry of Finance.

The risk rating measures the ability of a country to pay its obligations or debts. The page of Moddy indicates that the rating CAA1 means that emissions (eg bonds) are considered speculative with bad reputations and are subject to very high credit risk. While the B3 rating is considered of intermediate grade and are subject to moderate credit risk, which may have certain speculative characteristics.

The Minister of Finance, Fausto Herrera said the rating agency has only accepted the greater fiscal flexibility that the Ecuadorian state has, its strong liquidity position,the improvement in the investment climate and the access to different sources of funding. According to the Minister, Moody’s acknowledged the government policies that are applied to counteract the fall in oil prices. Among them, he said, are the proposed tax law that will generate more revenue and accelerate the private investment.