LatinNews Regional Monitor: Andean Group - 23 April 2020

* International credit ratings agency Standard & Poor’s (S&P) has downgraded Ecuador’s credit rating to 'SD' (Selective Default), after the government reached an agreement with private bondholders on 17 April to suspend interest payments until August. The SD rating indicates that certain repayment obligations have been breached, but that Ecuador is otherwise committed to servicing its debt. S&P’s risk rating on the bonds in question, maturing between 2022 and 2030, was downgraded from 'CC' to 'D' (Default). Ecuador’s government has committed to further renegotiate the country’s debt profile, under considerable domestic pressure to prioritise emergency spending - in response to the coronavirus (Covid-19) pandemic and the associated economic crisis - over debt repayments.

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