Latest news with #Bogota
Associated Press
7 hours ago
- Business
- Associated Press
S&P Global Ratings affirms Ecopetrol's Stand-Alone Credit Profile (SACP) while adjusting its global credit rating
BOGOTA, Colombia, June 27, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, the 'Company') informs that on June 27, 2025, the credit rating agency S&P Global Ratings downgraded Ecopetrol's global credit rating from BB+ to BB and maintained the negative outlook. This action is aligned with the downgrade of the Republic of Colombia's sovereign rating on June 26, 2025. Additionally, the agency affirmed Ecopetrol's Stand-Alone Credit Profile (SACP) at bb+. In its report, S&P stated that Ecopetrol's global rating was adjusted in line with Colombia's sovereign rating and remains capped by it, due to the Company's significance in national revenue generation, its status as a government-related entity, and its role in the country's energy transition. The negative outlook on Ecopetrol reflects the sovereign's outlook. Regarding the stand-alone rating, the agency expects Ecopetrol to maintain its leverage ratio (debt/EBITDA) between 2.0x and 2.5x, with an EBITDA margin close to 40%. S&P also positively highlighted the Company's 2040 strategy, which focuses on growth prospects, reserve replacement, high operational availability of refineries, and strengthening the investment portfolio through business diversification. The full report issued by the agency on June 27, 2025, announcing the rating action, can be accessed in the link below: Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. For more information, please contact: Head of Capital Markets Carolina Tovar Aragón Email: [email protected] Head of Corporate Communications (Colombia) Marcela Ulloa Email: [email protected] View original content: SOURCE Ecopetrol S.A.
Yahoo
13 hours ago
- Business
- Yahoo
Moody's Affirms Ecopetrol's Global and Standalone Credit Ratings
BOGOTA, Colombia, June 27, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the "Company" or "Ecopetrol") announces that the credit rating agency Moody's has affirmed the Company's global credit rating at Ba1 with a stable outlook. The agency also confirmed Ecopetrol's standalone rating at b1. Moody's stated that the Ba1 global rating reflects Ecopetrol's position as Colombia's leading oil and gas producer, as well as its significant power transmission business in Colombia and other Latin American countries. The aforementioned factors support a global rating that is three notches above the Company's standalone rating, including the backing of the Colombian government through the gradual phase-out of fuel subsidies, as well as the reduction in accounts receivable related to the Fuel Price Stabilization Fund (FEPC), both of which have contributed to strengthening the Company's liquidity. Regarding the standalone rating, Moody's highlighted the strength and stability of the Company's cash flow, further supported by its power transmission subsidiary (ISA) and midstream affiliates, which together contributed 18% to EBITDA in 2024. The report issued by the rating agency on June 27, 2025, announcing the rating affirmation, can be accessed in the link below: Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. For more information, please contact: Head of Capital MarketsCarolina Tovar AragónEmail: investors@ Head of Corporate Communications (Colombia) Marcela Ulloa Email: View original content: SOURCE Ecopetrol S.A. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
S&P Global Ratings affirms Ecopetrol's Stand-Alone Credit Profile (SACP) while adjusting its global credit rating
BOGOTA, Colombia, June 27, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, the "Company") informs that on June 27, 2025, the credit rating agency S&P Global Ratings downgraded Ecopetrol's global credit rating from BB+ to BB and maintained the negative outlook. This action is aligned with the downgrade of the Republic of Colombia's sovereign rating on June 26, 2025. Additionally, the agency affirmed Ecopetrol's Stand-Alone Credit Profile (SACP) at bb+. In its report, S&P stated that Ecopetrol's global rating was adjusted in line with Colombia's sovereign rating and remains capped by it, due to the Company's significance in national revenue generation, its status as a government-related entity, and its role in the country's energy transition. The negative outlook on Ecopetrol reflects the sovereign's outlook. Regarding the stand-alone rating, the agency expects Ecopetrol to maintain its leverage ratio (debt/EBITDA) between 2.0x and 2.5x, with an EBITDA margin close to 40%. S&P also positively highlighted the Company's 2040 strategy, which focuses on growth prospects, reserve replacement, high operational availability of refineries, and strengthening the investment portfolio through business diversification. The full report issued by the agency on June 27, 2025, announcing the rating action, can be accessed in the link below: Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. For more information, please contact: Head of Capital MarketsCarolina Tovar AragónEmail: investors@ Head of Corporate Communications (Colombia)Marcela UlloaEmail: View original content: SOURCE Ecopetrol S.A. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20 hours ago
- Business
- Bloomberg
Colombia Holds Key Rate at 9.25% After Two Credit Downgrades
Colombia 's central bank resisted government pressure to slash interest rates a day after the nation's deteriorating fiscal outlook triggered two ratings downgrades. The bank's board left the benchmark rate unchanged at 9.25% on Friday in a split decision, Governor Leonardo Villar told reporters in Bogota. Of 32 analysts surveyed by Bloomberg, 27 correctly predicted the move, while five had forecast a quarter-percentage-point cut.
Reuters
a day ago
- Business
- Reuters
Colombia central bank expected to hold rate amid fiscal uncertainty
BOGOTA, June 27 (Reuters) - Colombia's central bank board is expected to hold the benchmark interest rate at 9.25% on Friday, on the back of mounting fiscal uncertainty and despite recent lower inflation. A majority of analysts in a Reuters survey last week predicted the hold, while a minority predicted a 25 basis point cut to 9%. The government's recent suspension of the so-called fiscal rule, which imposes policy constraints to protect public coffers, and an increase in its deficit target have set off alarm bells in a market already wary of President Gustavo Petro's economic policies. The government now has a deficit target for 2025 of 7.1% of gross domestic product, an increase from the previous estimate of 5.1% of GDP. The finance ministry has significantly increased its 2025 inflation estimate to 4.5%, nearly in line with the central bank technical team's prediction of 4.4%. Latin America's fourth-largest economy is facing lower tax revenue, high debt and difficulty reducing spending. "We are expecting stability," said Camilo Perez, director of economic investigation and market analysis at Banco de Bogota, though he said chances of a rate cut had increased in recent days on reduced recent inflation and an increase in value for local bonds and the peso. "The fiscal situation has notably deteriorated." Inflation, though still well above the central bank's long-term target of 3%, was down more than expected in the 12 months to May, to 5.05%. The bank board surprised the market in April with a 25 basis point cut, after a pause in a cutting cycle began in December 2023. Despite the predicted hold in the rate, 15 analysts who participated in additional Reuters questions in last week's survey all foresee a rate cut in the coming months, with 11 predicting a cut in July and the remaining four in September.
