Moody’s Changes Ecopetrol’s Credit Rating to Ba1

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(Ecopetrol, 23.May.2024) — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that credit rating agency Moody’s downgraded its global credit rating from Baa3 to Ba1 and changed the outlook from negative to stable. Additionally, the agency reduced the individual rating (BCA[1]) from Ba3 to B1.

The decision to modify the individual rating was based primarily on its review of debt management, dividend distribution above the company’s policy and cash generation expectations in 2025.

Moody’s mentioned that the overall Ba1 rating reflects the company’s position as Colombia’s principal producer of oil and gas, as well as its significant power transmission business in Colombia and in other Latin American countries, the strong and stable cash flow at its subsidiaries Interconexión Eléctrica S.A. E.S.P. and Cenit SAS

The rating agency stated that Ecopetrol will be able to meet its financial obligations through access to the global capital market and the support of the Colombian government.

The evaluation of the aforementioned factors supports an overall rating three levels above the company’s individual rating.

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[1] Baseline Credit Assessment

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