-- We upgraded the Republic of Ecuador to 'B/B' from 'B-/C' on sustained higher levels of investment that indicate improved growth prospects and higher levels of government revenues.
-- Higher levels of financing from China, combined with increased oil revenues, have allowed for greater public-sector investment.
-- Ecuador's recent history of default and inconsistent economic policies remain as credit constraints. Rating Action On June 7, 2012, Standard & Poor's Ratings Services raised its long-term sovereign rating on the Republic of Ecuador to 'B' from 'B-' and the short-term rating to 'B' from 'C'. The outlook is stable. Rationale The upgrade reflects the perceived improvement in the government's willingness, as well as capacity, to service its debt due to improved financing options and higher oil production and economic growth prospects.