November 23, 2016 / 6:26 AM / 2 years ago

BRIEF-Moody's affirms Ecuador's B3 rating; maintains stable outlook

Nov 23 (Reuters) -

* Moody’s affirms Ecuador’s B3 rating, maintains stable outlook

* “The ongoing stabilization in broader macro-economic metrics will be followed by a gradual growth recovery”

* “Oil price shock has had a negative effect on ecuador’s growth and government finances, and heightened liquidity pressures”

* Government’s policy measures to adjust expenditures in response to lower oil revenues will keep government debt ratios at moderate levels

* “Ecuador’s economic strength is moderate and fiscal strength is high, and both factors support its b3 rating”

* Government’s tight liquidity position will likely remain a constraint on the B3 rating

* Stable outlook incorporates expectation of continued macro-economic stabilization characterized by subdued gdp growth

* Ecuador’s foreign currency ceilings remain unchanged at b2 for the long-term bond ceiling and caa1 for the long-term deposit ceiling

* Expect the 2016 deficit to remain at levels similar to 2015

* Expect central government debt to go above 36% of gdp in 2016 and stabilize at between 40% and 45% of gdp over next three years

* Expects that GDP will contract 2.5% in 2016 but will likely resume an annual pace of expansion in 2017

* Expect recovery will be gradual, with gdp growth rising towards 3% by the end of the decade Source text for Eikon:

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