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“We have to wait for the results of the tax reform," analyst Richard Francis told Finance Colombia in New York.

Finance Minister Mauricio Cardenas says the overhaul "is a difficult measure that will require a large sacrifice of all Colombians — but it is necessary."

One sector Fitch sees having a tough year ahead is telecom, due to the pressure on credit profiles from low profits and free cash flow.

The mayor is seeking to raise up to $1.4 billion USD for new infrastructure, especially highways and a regional train.

Fitch's assessment of the Bancolombia subsidiary was "driven by the potential support it would receive from its parent if needed."

Mayor Enrique Penãlosa wants to raise some $1.35 billion USD for transportation projects, but he is facing strong opposition from labor and the Social Party of National Unity.

Interestingly, this loan — for 990 billion Colombian pesos — wasn't due until February 2024.

Fitch's Latin American Sovereign Overview report reflects the weakness in economies throughout the region, with Colombian banks facing major headwinds.

The biggest risk for the economy is that Santos has now lost too much political capital to get tax reform passed this year.

"The record number of sovereign downgrades in 2016 overwhelmingly reflects weaknesses in emerging markets," says Tony Stringer of Fitch Ratings.