(Energy Analytics Institute, Piero Stewart, 18.Jul.2018) – The risk-rating agency Moody’s increased the baseline credit assessment (BCA) two notches, to ba1 from ba3 for Colombia’s state oil company.
The agency said the higher BCA was primarily due to Ecopetrol’s “solid metrics and progress in its strategy of growth and adding to reserves, with a reserves replacement index of 126% at the end of 2017,” reported Ecopetrol in an official statement, citing a Moody’s press release.
In the release, Moody’s highlighted Ecopetrol’s four areas of growth:
1. Implementation of improved recovery and infill projects,
3. Assessment of opportunities in non-conventional deposits, and
4. Inorganic growth leveraged on its strong cash position.
Moody’s also stressed “Ecopetrol’s solid liquidity and the management team’s commitment to protecting credit metrics.”
The agency maintained Ecopetrol’s rating at Baa3 with a stable outlook.