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

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Ecopetrol S.A. (NYSE: EC) announced that Fitch Ratings has reaffirmed its credit rating at BB+ with a stable outlook. Additionally, the company's stand-alone credit rating was set at bbb. The agency praised Ecopetrol's strong liquidity, backed by cash generation, access to capital markets, and sound debt structure. The Colombian government's significant stake (88.5%) in the company was also recognized as a critical factor. Ecopetrol is a leading energy company in Colombia, covering over 60% of the country's hydrocarbon production.

Positive

• Fitch Ratings maintained Ecopetrol's credit rating at BB+ with a stable outlook.
• The company's liquidity profile is strong, attributed to cash generation and capital market access.
• Ecopetrol has a significant role in Colombia's energy sector, reflecting its strategic importance.

Negative

• None.

BOGOTA, Colombia, Nov. 18, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the rating agency Fitch Ratings maintained the company's credit rating at "BB+", with a stable outlook, and the Company's individual credit rating (Stand-Alone, excluding the Government's support) at "bbb".

The rating agency highlighted Ecopetrol's liquidity profile, which is supported by cash generation, access to capital markets and an adequate debt structure. It also mentioned the importance of receiving government funds through the account receivable from the Fuel Price Stabilization Fund (FEPC).

Fitch also highlighted Ecopetrol's strategic relevance for Colombia, as the Nation is holder of 88.5% of its voting share capital.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 18,000 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 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 
Maria Catalina Escobar Hoyos 
Email: investors@ecopetrol.com.co

Head of Corporate Communications 
Mauricio Téllez 
Email: mauricio.tellez@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's current credit rating from Fitch Ratings?

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

What are the main factors supporting Ecopetrol's credit rating?

Ecopetrol's strong liquidity profile, cash generation, access to capital markets, and adequate debt structure support its credit rating.

What percentage of Ecopetrol's voting share capital is held by the Colombian government?

The Colombian government holds 88.5% of Ecopetrol's voting share capital.

How significant is Ecopetrol in Colombia's energy sector?

Ecopetrol is responsible for more than 60% of Colombia's hydrocarbon production, making it a vital player in the nation's energy landscape.

Which sectors does Ecopetrol operate in?

Ecopetrol operates in hydrocarbon production, transportation, logistics, refining, petrochemicals, and gas distribution sectors.