Fitch Ratings maintains Ecopetrol S.A.'s rating at BB+, with a stable outlook

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Fitch Ratings has maintained Ecopetrol S.A.'s (NYSE: EC) credit rating at BB+ with a stable outlook. The agency also reaffirmed the company's national long- and short-term ratings at 'AAA(col)' and 'F1+(col)', respectively. Fitch highlighted Ecopetrol's solid financial profile, strategic importance to Colombia, stable operating metrics, and access to capital markets. The potential acquisition of assets in the Permian Basin is not expected to significantly affect the company's credit profile.

Ecopetrol is Colombia's largest company and a major integrated energy player in the Americas. It dominates Colombia's hydrocarbon production, transportation, and refining sectors, while also holding leading positions in petrochemicals and gas distribution. The company has expanded internationally, with operations in the US, Brazil, and through its 51.4% stake in ISA, in power transmission across South America.

Positive

• Fitch Ratings maintained Ecopetrol's credit rating at BB+ with a stable outlook
• National long- and short-term ratings reaffirmed at 'AAA(col)' and 'F1+(col)'
• Solid financial profile and stable operating metrics highlighted by Fitch
• Strategic importance to Colombia recognized
• Continued access to capital markets
• Potential Permian Basin asset acquisition not expected to significantly affect credit profile

Negative

• None.

BOGOTA, Colombia , July 30, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") reports that the credit rating agency Fitch Ratings maintained the Company's credit rating at BB+ with a stable outlook. Additionally, the agency reaffirmed the Company's national long- and short-term ratings at 'AAA(col)' and 'F1+(col)', respectively, both with a stable outlook.

The rating agency highlighted Ecopetrol's solid financial profile, the strategic importance of the Company for Colombia, stable operating metrics, as well as the available cash and continued access to capital markets. On the other hand, according to the agency's estimates, the potential acquisition of assets in the Permian Basin is not expected to significantly affect the Company's credit profile.

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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, 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 press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects. These are all projections and, as such, they are based solely on the expectations of the managers regarding the future of the company and their continued access to capital to finance the company's business plan. The realization of said estimates in the future depends on the behavior of market conditions, regulations, competition, and the performance of the Colombian economy and the industry, among other factors, and are consequently subject to change without prior notice.

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 (a)
Lina María Contreras Mora
Email: investors@ecopetrol.com.co

Head of Corporate Communications 
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's (EC) current credit rating according to Fitch Ratings?

Fitch Ratings has maintained Ecopetrol's (EC) credit rating at BB+ with a stable outlook.

How did Fitch Ratings assess Ecopetrol's (EC) national ratings in July 2024?

Fitch reaffirmed Ecopetrol's (EC) national long-term rating at 'AAA(col)' and short-term rating at 'F1+(col)', both with a stable outlook.

What factors did Fitch Ratings highlight in their assessment of Ecopetrol (EC)?

Fitch highlighted Ecopetrol's solid financial profile, strategic importance to Colombia, stable operating metrics, available cash, and continued access to capital markets.

How might Ecopetrol's (EC) potential acquisition in the Permian Basin affect its credit profile?

According to Fitch Ratings, the potential acquisition of assets in the Permian Basin is not expected to significantly affect Ecopetrol's credit profile.