Moody's affirms Ecopetrol S.A.'s investment grade rating and stable outlook

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) has maintained its long-term international rating at Baa3 with a stable outlook, as confirmed by Moody's. Despite challenges from declining oil prices and a global demand contraction due to the COVID-19 pandemic, the agency praised Ecopetrol for its solid performance and liquidity measures. The company's individual credit rating remains at ba1. Notably, Ecopetrol is Colombia's largest company and ranks among the top 40 oil companies worldwide, with operations in Colombia, Brazil, Peru, and the U.S.

Positive

• Moody's affirmed Ecopetrol's long-term international rating at Baa3 with a stable outlook.
• The company's proactive measures to protect liquidity during the COVID-19 crisis were highlighted.

Negative

• The press release acknowledges the drop in oil prices and contraction in demand due to the pandemic.

BOGOTÁ, Colombia, Dec. 4, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the rating agency Moody's kept the Company's long-term international rating at Baa3, with stable outlook.

In its report, the rating agency highlights the company's solid performance despite the drop in oil prices and contraction in demand, caused by the COVID-19 pandemic. Likewise, it emphasizes the measures adopted by Ecopetrol to protect its liquidity and respond proactively to the crisis.

Moody's maintained Ecopetrol's individual credit rating (Stand - Alone/ without incorporating government support) at ba1.

Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.

This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.

For more information please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co

Jorge Mauricio Tellez 
Media Relations (Colombia) 
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co 

View original content:http://www.prnewswire.com/news-releases/moodys-affirms-ecopetrol-sas-investment-grade-rating-and-stable-outlook-301186770.html

SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's current credit rating from Moody's?

Ecopetrol's current credit rating from Moody's is Baa3 with a stable outlook.

How did the COVID-19 pandemic impact Ecopetrol?

The COVID-19 pandemic caused a drop in oil prices and a contraction in demand, affecting Ecopetrol's operations.

Where does Ecopetrol operate?

Ecopetrol operates in Colombia, Brazil, Peru, and the Gulf of Mexico in the United States.

What was Ecopetrol's individual credit rating?

Ecopetrol's individual credit rating is ba1.

What measures has Ecopetrol taken to address liquidity issues?

Ecopetrol adopted measures to protect its liquidity and respond proactively to the crisis caused by the pandemic.