Tag

Fitch says gpvernment-controlled enterprises may raise fiscal pressures and financing needs of governments that already face sizeable fiscal challenges.

Downgrades exceeded upgrades 2-to-1 compared to 4.3x during 1Q24 and 7.1x during 4Q23.

"In response to these market dynamics, companies are striving for a more balanced strategy between growth and profitability," said Fitch Ratings.

The government’s intention to amend the country’s fiscal rule highlights continuing challenges to consolidation sufficient to stabilize debt/GDP durably.

Colombian telecom operators should see modest improvement in their financial profiles in 2024 and 2025.

Electric generation firms are in a good position after they "successfully weathered low hydrology conditions...with only moderate impacts on profitability and liquidity."

Cartagena's rating is explained by results that exceeded expectations in 2023, which consolidates a structural improvement in the district's tax collection.

"The improvements in the ratings and the stabilization of the outlook reflect the strengthening in Tigo UNE's liquidity."

In addition to citing the telecom's strained credit metrics and negative free cash flow generation, Fitch cited intense competition in the Colombian telecom market.

The ratings agency noted ISA's low business risk profile, manageable regulatory risk, and indebtedness that matches expectations, among other factors.