(Energy Analytics Institute, 25.Aug.2022) — Moody’s Investors Service affirmed Ecopetrol S.A.‘s (BVC: ECOPETROL; NYSE: EC) global credit rating at Baa3 with a negative outlook and downgraded its individual rating (BCA) from Ba1 to Ba3, the Bogotá-based oil giant announced 25 August 2022 in an official statement.
The rating agency said it believes Colombia’s state-owned Ecopetrol “will be able to meet its financial obligations even in a volatile crude oil price environment, highlighting the company’s access to the global and local capital markets, the availability of a committed banking credit facility in the amount of $1.2 billion, the cash flow of its subsidiaries ISA and Cenit and the financial support of the Colombian national government.”
Moody’s decision to modify the individual rating was based mainly on the following: (a) debt maturities in 2023, and (b) the potential impact for the company of the possible changes on environmental and energy policies.
By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.