Ecuador 2015 Bond Further Junked

S&P has downgraded Ecuador’s 2015 global bond to D from C. “The D rating reflects the trustee’s inability to disburse to bondholders the scheduled $30.5m coupon due on the bond at the end of the 30-day grace period, which was January 15, 2009,” notes S&P. Ecuador said last week it would honor its coupon payment on the 2015s, which it did not consider to part of the batch of so-called illegal debt. But the fact that it missed the period to meet this payment has led S&P to cut the bond to D.