Everyone loves the biblical story of the prodigal son. On Wednesday that tale received a touch of market realism when Standard & Poor’s, the credit ratings agency, decided to raise the rating by a notch of a serial defaulter which has been recently welcomed back by the debt markets: Ecuador.
S&P raised the Andean country’s long-term sovereign credit rating to B+ from B, with a stable outlook. While the new rating still leaves the country below investment grade Ecuador’s leftist President, Rafael Correa, is gaining some praise when it comes to economic management. Continue reading »