Moody’s gives Ecopetrol notes Baa2

Moody's Investors Service said it assigned a foreign currency rating of Baa2 to $1.5 billion of proposed notes due 2025 to be issued by Ecopetrol SA.

The outlook is stable.

The proposed securities are senior unsecured and pari passu with Ecopetrol's other senior foreign currency debt, which is also rated Baa2.

Proceeds will be used primarily to fund capital expenditures.

"Ecopetrol's Baa2 rating reflects its status as Colombia's leading oil and gas producer, accounting for about two-thirds of the country's production, with a growing production, reserves and crude oil export profile," Moody’s vice president and senior credit officer Nymia Almeida said in a news release.

The rating derives one notch of uplift under Moody's joint-default analysis, based on a high level of government support and moderate default correlation, the agency said. A baseline credit assessment of baa3 underlies the company's Baa2 issuer rating.

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