BOGOTA - S&P Global Ratings has revised the credit rating outlook for Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC), Colombia's largest company and a significant player in the American energy sector, from stable to negative. This change, announced on Thursday, aligns with a similar adjustment in the outlook for Colombia's sovereign credit rating.
Despite the altered outlook, S&P has affirmed Ecopetrol's global rating at 'BB+' and maintained its Stand-Alone credit profile at 'bbb-'. This indicates the company's investment-grade status remains intact, with no anticipated review of this independent profile within the next 12 months.
The rating agency has emphasized Ecopetrol's vital role in the Colombian economy, highlighting the government's substantial stake in the company. As a result, Ecopetrol's credit rating will continue to mirror the sovereign rating of Colombia.
Ecopetrol is a major integrated energy company in the Americas, employing over 18,000 people. It is responsible for a significant portion of Colombia's hydrocarbon production and holds prominent positions in transportation, logistics, refining, petrochemicals, and gas distribution. The company has also expanded its reach internationally, with operations in strategic basins across the American continent and interests in energy transmission, real-time system management, and road concessions through its acquisition of ISA's shares.
S&P's report detailing the outlook revision was released on January 18, 2024, and a future statement is expected to publish the full document.
This news is based on a press release statement and reflects the current assessment of Ecopetrol's creditworthiness by S&P Global Ratings. It is important to note that such assessments can be influenced by various factors, including market conditions, regulatory changes, competition, and the overall performance of the Colombian economy and industry.
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