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"The next administrations in both Chile and Colombia will face challenges to achieving fiscal consolidation," said Fitch.

After Brazil (51% negative) and Colombia (20%), Fitch Ratings has assigned negative outlooks to 19% of corporates in Chile, 12% in Peru, 9% in Mexico, and 6% in Argentina.

"Corporates have been negatively affected by elevated interest rates in several countries and rising taxes," said Paula Bunn of Fitch Ratings.

Fitch highlighted Isagen's improving leverage position and "adequate" liquidity levels "supported by a healthy cash balance" and "manageable debt structure profile."

"Banagrario's business model is consistent with its key role for the development of the government's agricultural policy,” stated Fitch Ratings.

Though adding a strategic partner could be a positive development, Fitch Ratings views Avianca's liquidity as low.

The outlook upgrade reflects a sound financial position and Ecopetrol's ability to respond to a high volatility oil price environment.

Fitch noted Colombia improving macroeconomic imbalances, current account deficit reduction, and falling inflation rate.

"Signs for an improvement in credit metrics are slowly emerging for corporates across Latin America following a tough year during 2016," said Jay Djemal of Fitch Ratings.

"Investment reductions are expected to affect its ability to replenish reserves in the long run above production levels," said Lucas Aristizabal of Fitch.