Moody's downgrades rating of Ecopetrol S.A but conserves its investment grade rating
January 19, 2016 at 08:52 AM EST
BOGOTA, Colombia, Jan. 19, 2016 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) reports that the credit rating agency Moody's Investors Service downgraded the Company's rating from Baa2 to Baa3 and placed the Company's outlook under review. The Company remains investment grade under the new rating. In addition, Ecopetrol's baseline credit assessment, which does not include implicit government support, was downgraded from baa3 to ba3.
The downgrade of the Company's rating reflects a persistent environment of low oil prices, which will continue to negatively affect the Company's cash flow and financial indicators.
The complete report can be found at www.moodys.com.
Ecopetrol is the largest company in Colombia and is an integrated oil & gas company; it is among the top 50 oil companies in the world and among the four top ones in Latin America. Besides Colombia - where it generates over 60% of the national production - it has exploration and production activities in Brazil, Peru & the US (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia and most of the pipeline and multi-product pipeline network in the country, and is significantly increasing its participation in bio-fuels.
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 and Section 21E of the U.S. Securities Exchange Act of 1934. 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 further information, please contact:
Head of Corporate Finance and Investor Relations
Media Relations (Colombia)
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SOURCE Ecopetrol S.A.