The Japanese rating agency Rating and Investment Inc. (R & I) has upgraded Colombia’s long-term debt rating from BBB- to BBB with a stable outlook.
R & I confirmed its confidence in the country’s economic stability in recent years, noting that Colombia recorded real GDP growth of 4.8% in 2014 and although it will likely be affected by the sharp drop of oil prices going forward, the economy continues to show a strong and sustained dynamic, thanks to the 4G transportation infrastructure program.
According to the agency, the 4G program should not only increase the country’s potential GDP in the medium term, but it will give a strong boost to real growth of the economy in the coming years.
“This new improved rating of Colombian debt is a vote of confidence by the international community, even in times of uncertainty in the global economy. It is a very strong signal that reflects the strength of the economic institutions of our country, especially the Regla Fiscál,” -Minister of Finance, Mauricio Cardenas.
Similarly, R & I considered Colombia’s meeting the goals of the “Regla Fiscál” fiscal rule since its implementation and the commitment of the authorities to ensure future compliance. At the same time, the agency noted the improvement in debt indicators, such as the low exposure in foreign currency debt, and positive indicator of coverage of total reserves in months of imports.
“This new improved rating of Colombian debt is a vote of confidence by the international community, even at a time when the global economy is facing declines in oil prices. It is a very strong signal that reflects the strength of the economic institutions of our country, especially the Fiscal Rule “said Minister Mauricio Cardenas.
With this improved rating from Rating and Investment, Inc., the major rating agencies in the world have reached a consensuse on Colombia debt at BBB / Baa2 (Standard and Poors, Fitch, DBRS and Rating & Investment, Moody’s), thus consolidating the positive trajectory of ratings and positioning Colombia solidly within the investment grade neighborhood.