Fitch ups Colombia to positive

Fitch Ratings said it affirmed Colombia's long-term foreign-currency issuer default rating at BBB-, long-term local-currency issuer default rating at BBB, short-term foreign-currency issuer default rating at F3 and country ceiling at BBB.

The outlook was revised to positive from stable.

The outlook revision reflects Colombia's increased resilience due to strengthening external accounts and favorable government debt dynamics, Fitch said.

As a result of continued international reserve accumulation, the agency said it expects Colombia to become a net sovereign external creditor in 2013.

In addition, government debt burden continues to decline driven by fiscal consolidation and economic growth, Fitch said.

Colombia's ratings are underpinned by its prudent policies, solid debt repayment record and strong macroeconomic performance compared to peers, the agency said.

These credit strengths are balanced by the government's narrow revenue base and structural constraints, such as low income per capita and high commodity dependence, Fitch added.

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