Monday, 27 Jan 2020

Fitch Ratings confirms Ecopetrol S.A.'s investment grade rating

BOGOTÁ, Colombia: Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) reports that the risk-rating agency Fitch Ratings has maintained the company's credit rating at BBB with negative outlook, and its stand-alone rating (without incorporating government support) at bbb.

In the press release, Fitch noted the strength of Ecopetrol's financial profile, due to the continuous improvement in its credit metrics in 2019. The agency also emphasized the company's solid liquidity position, supported by its cash deposits, positive cash flow generation, strong access to the capital markets and adequate debt maturity profile.

In its report, the rating agency noted the improvement in reserves life in 2018 to 7.2 years, from 6.8 years in 2016, as a result of a reserves replacement ratio of 129%.

The rating agency also highlighted the company's close relationship with the Colombian government and its strategic importance for the country. The negative outlook is in line with the outlook for the Republic of Colombia (BBB/ negative).

(PRN | 2 months ago)