Medellín utility EPM has filed a statement with Colombia’s financial regulatory authority Superfinanciera answering the agency’s inquiry regarding the impact of the company’s credit downgrade by Fitch Ratings after the entire board of directors resigned in response to conflict with Medellín’s Mayor Daniel Quintero.

In the statement the utility submitted to the regulators, it said that:

“The reduction of one notch in the international rating of EPM by the agency Fitch Ratings, presented on August 13, has not generated, to date, acceleration of financial obligations, breach or activation of covenants, nor has it implied the requirement of additional guarantees by the current financial creditors.

On the other hand, since Tuesday, August 11, a series of teleconferences have been held with financial creditors responding to concerns about the corporate governance situation.

In relation to the events that led to the downgrading of its credit rating, EPM has received notification from some local and international financial entities of temporary suspension of commercial relations, resulting in the reduction of quotas and credit limits in operations such as loans, exchange risk hedges and bank guarantees, without to date, this having had a material effect on liquidity and EPM operations.”