Ecopetrol (EC) Downgraded at Moody’s, Outlook Revised to Negative

With a workforce of implicit 18,000, Ecopetrol S.A. (NYSE:EC) is among the largest companies successful Colombia and 1 of the starring integrated vigor groups connected the American continent.

On May 6, the recognition standing bureau Moody’s downgraded Ecopetrol S.A. (NYSE:EC)’s planetary recognition standing from Ba1 to Ba2, portion besides revising its outlook from unchangeable to negative. However, the bureau affirmed the company’s Baseline Credit Assessment (BCA), oregon stand‑alone recognition profile, astatine b1, highlighting its intrinsic strength.

According to Moody’s, the downgrade is chiefly driven by a much cautious appraisal of enactment from the Government of Colombia. This stems from the rising concerns regarding imaginable authorities interference and reduced clarity regarding the timeliness and predictability of enactment mechanisms, particularly those tied to the Fuel Price Stabilization Fund (FEPC).

Conversely, Moody’s reaffirmed Ecopetrol S.A. (NYSE:EC)’s BCA astatine b1, citing the company’s coagulated presumption arsenic the starring integrated lipid and state institution successful Colombia. This appraisal is supported by Ecopetrol’s diversified operations, mean leverage levels, coagulated liquidity, and its cardinal relation successful ensuring the South American country’s vigor supply.

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