S&P Global Ratings downgrades Ecopetrol S.A. rating following the same rating action on Colombia's sovereign rating

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Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced a downgrade of its credit rating by S&P Global Ratings from BBB- (negative outlook) to BB+ (stable outlook), following a similar downgrade of the Republic of Colombia. The company's Stand-Alone rating remains at bbb-. As Colombia's largest company and a key player in Latin America's oil and gas sector, Ecopetrol accounts for over 60% of the country's hydrocarbon production. The downgrade may impact investor confidence and access to capital.

Positive

• Stand-Alone rating maintained at bbb-.

Negative

• Credit rating downgraded from BBB- to BB+.
• Potential impact on investor confidence and capital access.

BOGOTÁ, Colombia, May 21, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that, in line with the downgrade of the rating of the Republic of Colombia, the rating agency S&P Global Ratings downgraded the company's credit rating from BBB- (negative outlook) to BB+ (stable outlook).

S&P Global Ratings maintained Ecopetrol's Stand-Alone rating (without incorporating government support) at bbb-.

Ecopetrol is the largest company in Colombia and one of the main integrated oil and gas conglomerates in Latin America, with more than 13,000 employees. It accounts for more than 60% of the hydrocarbon production in Colombia, and it owns the largest refineries and most of the country's oil-pipelines and multi-purpose pipelines network. It also participates in the commercialization of energy and in the distribution of gas. At the international level, Ecopetrol focuses on strategic basins on the American continent, with E&P operations in the United States (the Permian basin and the Gulf of Mexico), Brazil and Mexico. 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 its sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, the performance of the Colombian economy and industry, and other factors; therefore, they are subject to change without prior notice.

For further details, please contact:

Head of Capital Markets
Tatiana Uribe Benninghoff
Phone: +571-234-5190
Email: investors@ecopetrol.com.co

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

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SOURCE Ecopetrol S.A.

FAQ

What was Ecopetrol's new credit rating as of May 21, 2021?

Ecopetrol's credit rating was downgraded to BB+.

What is Ecopetrol's Stand-Alone rating?

Ecopetrol's Stand-Alone rating is maintained at bbb-.

Why did S&P Global downgrade Ecopetrol's rating?

The downgrade followed the rating action on the Republic of Colombia.

What percentage of Colombia's hydrocarbon production does Ecopetrol account for?

Ecopetrol accounts for over 60% of Colombia's hydrocarbon production.

How might the downgrade affect Ecopetrol investors?

The downgrade may impact investor confidence and access to capital.