(Fitch Ratings, 8.Jun.2018) – Fitch Ratings rates the $500 million reopening of Ecopetrol S.A.’s 5.875% notes due in 2023 ‘BBB’.
The company expects to use the proceeds from the proposed reopening for general corporate purposes, including capital expenditures.
Fitch’s Foreign and Local Currency Issuer Default Ratings (IDRs) for Ecopetrol are ‘BBB’ and ‘BBB+’, respectively, with a Stable Outlook. The company’s ratings reflect the close linkage with the Republic of Colombia (FC/LC IDRs ‘BBB’/’BBB+’), which currently owns 88.5 percent of the company.
Ecopetrol’s ratings also reflect its strong financial profile and improving production levels. Ecopetrol’s recently revised growth strategy and associated CAPEX plan are considered adequate for the company’s credit quality and cash flow generation ability. Ecopetrol is expected to maintain a financial and credit profile consistent with the assigned rating.
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