Specifically, the big three ratings agency affirmed the following ratings for ISA:

• long-term national rating at AAA(col) with a stable outlook
• short-term national rating at F1+(col)
• bond program rating at AAA(col)
• commercial paper program rating F1+(col)
• issuer default rating (IDR) in both foreign and local currencies

Fitch noted in its accompanying statement that the IDR ratings, in particular, “reflect the company’s low business risk profile, which is characteristic of the power transmission business.” All the current ratings, the agency says, “take into account the strong geographic and business diversification of its revenue stream which, together with the high predictability of its operating cash flow.”

The company’s outlook is also aided by a strong credit profile, adequate liquidity and aggressive growth strategy, according to Fitch.

Fitch Ratings added that it “considers ISA’s business and financial profile to be strong enough to rate it two notches above its owner, Ecopetrol S.A.,” while noting that “ISA’s ratings to preserve the two-notch spread” would be impacted if Ecopetrol faces a negative ratings move.

“The ratings reflect ISA’s low business risk profile, derived from its stable and predictable cash flow generation, a characteristic of electric transmission companies, where approximately 80% of the company’s EBITDA generation comes from the electric transmission business over the rating horizon,” stated Fitch Ratings.

“The rest of the EBITDA generation is mainly concentrated in concession roads, with operations in Colombia and three in Chile, which include a compensation mechanism that extends the concession period or offers a minimum revenue guarantee in case the concessions register low traffic volumes. The agency estimates that the telecommunications business accounts for less than 3% of the company’s consolidated EBITDA.”

This is in line with the BBB rating and stable outlook that Fitch Ratings has maintained for the nation of Colombia, which is the majority owner of Bancóldex.

The big three credit rating agency also affirmed its support rating floor at BBB for the Bogotá-based development bank as well as the national ratings of its subsidiaries ARCO Grupo Bancoldex S.A. Compania de Financiamiento (Arco) and Fiduciaria Colombiana de Comercio Exterior S.A. (Fiducoldex).

“The affirmation of Bancoldex’s IDRs reflects Fitch’s unchanged view of potential support, if it were needed, by the government of Colombia,” stated Fitch Ratings in its analysis.

Because Bancóldex is primarily a wholesale credit provider, it has slow growth, low margins, and low administrative costs, which combine to keep its volatility low as well. Though this could change if it ramps up is loan issuance, the bank’s operations and high asset quality, particularly given its governmental support, do currently not pose a troubling level of risk.

“Bancóldex’s creditworthiness and ratings are directly linked to those of the sovereign,” states Fitch. “Hence, its ratings and outlook should move in, line with any potential change in Colombia’s ratings.”

The bonds, which mature on March 15, 2029, were issued on October 3 and have a coupon of 4.5%.

The bond issuance was made to fund governmental liability management transactions and for general budgetary purposes, as characterized by the big three credit rating agency. This included roughly $312 million to purchase outstanding notes due 2019 with a 7.4% coupon.

The company’s rating for the bonds match its BBB long-term, foreign-currency issuer default rating (IDR) for the nation of Colombia, which it affirmed in May.

“The bond rating would be sensitive to any changes in Colombia’s long-term, foreign-currency IDR,” said Fitch in a statement.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and J.P. Morgan Securities LLC served as joint book-running managers for the bond offering.