Moody's Confirms Ecopetrol S.A.'s Investment Grade Rating

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) announced that Moody's has confirmed its long-term international rating at Baa3 with a stable outlook. Additionally, Moody's maintained Ecopetrol's individual credit rating at ba1, highlighting the company's leadership in Colombia, benefits from its integrated structure, and solid liquidity levels. As Colombia's largest integrated oil company, Ecopetrol plays a significant role in the region's energy sector, generating over 60% of the country's oil production and expanding its biofuels segment.

Positive

• Moody's confirmed Ecopetrol's long-term international rating at Baa3.
• The company maintains a stable outlook according to Moody's.
• Ecopetrol's individual credit rating (ba1) is a positive indicator of its financial strength.
• The company's integrated operations provide a competitive advantage.

Negative

• None.

BOGOTÁ, Colombia, Aug. 3, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the rating agency Moody's kept the Company's long-term international rating at Baa3, with stable outlook.

Moody's highlighted the Company's strength as a leading firm in Colombia, the benefits of being an integrated company, as well as the adequate liquidity levels required to navigate the current situation.

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

Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.

For further information, contact:

Juan Pablo Crane De Narváez
Head of Capital Markets
Phone: (+571) 234 5190
Email: investors@ecopetrol.com.co

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

View original content:http://www.prnewswire.com/news-releases/moodys-confirms-ecopetrol-sas-investment-grade-rating-301105082.html

SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's current credit rating as of August 2020?

As of August 2020, Ecopetrol's long-term international credit rating is Baa3, confirmed by Moody's.

What outlook did Moody's assign to Ecopetrol's credit rating?

Moody's assigned a stable outlook to Ecopetrol's credit rating.

What factors contribute to Ecopetrol's credit rating?

Ecopetrol's credit rating is supported by its leadership in Colombia, integrated company benefits, and adequate liquidity levels.

What is Ecopetrol's individual credit rating?

Ecopetrol's individual credit rating, without government support, is rated ba1 by Moody's.

How significant is Ecopetrol in the Latin American oil market?

Ecopetrol is among the four largest oil companies in Latin America.