Moody's rates Ecopetrol notes Baa2

Moody's Investors Service said it affirmed Ecopetrol SA’s Baa2 ratings and assigned a Baa2 rating to its up to $1.5 billion of proposed senior notes due 2026. The outlook is stable.

Note proceeds will be used primarily to fund capital expenditures.

The agency said the affirmation was based on Ecopetrol's solid business strategy, now focused on expanding exploration activities to increase reserves as well as on improving production recovery and operating efficiencies across the board, which Moody’s said will help the company protect its credit quality through the current cycle of lower oil prices.

The ratings affirmation also considered Ecopetrol's status as Colombia's leading oil and gas producer and the size of its operations, Moody’s said.

The agency said leverage will increase in 2015 but is manageable based on the company's declining production costs, operating efficiency programs and previously moderate financial leverage for its rating category.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.