According to Colombian petroleum company Ecopetrol (BVC: ECOPETROL; NYSE: EC),Fitch Ratings, has affirmed its credit rating at BBB- with a negative outlook and its standalone credit profile (without incorporating government support) at bbb. Ecopetrol trades on NYSE and BVC stock exchanges, but is majority controlled by the Colombian national government.

In its statement, Fitch highlighted the company’s strategic importance for the country, its ability to maintain a solid financial profile, as well as its resilience in confronting the decrease in international oil prices during 2020. Likewise, it emphasized its strong capital structure which provided the company flexibility during the crisis.

The rating agency highlighted Ecopetrol’s liquidity profile, supported by its cash generation, strong access to capital markets and adequate debt maturity profile.

Additionally, Fitch highlighted the company’s strong linkage to the Republic of Colombia. The negative outlook is in line with Colombia’s sovereign rating (BBB-/ negative outlook).

Ecopetrol is the largest company headquartered in Colombia, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United StatesGulf of Mexico. Ecopetrol owns the largest refinery in Colombia, most of the country’s oil and pipeline network and is significantly increasing its participation in the biofuel sector.

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About the Author

Loren Moss is the founder and publisher of Finance Colombia. He has over 20 years of international business experience, including over a decade of experience in securities, insurance, and commercial real estate, at the institutional and international level.