S&P cuts seven Colombian issuers

S&P said it downgraded seven Colombian corporate and infrastructure issuers.

The agency considers each of the issuers directly or indirectly linked to Colombia’s sovereign and S&P lowered the country’s rating to BB+ from BBB- on Wednesday.

S&P trimmed Ecopetrol SA, Grupo de Inversiones Suramericana SA, Isagen SA ESP and Oleoducto Central SA (Ocensa) to BB+ from BBB- and assigned stable outlooks.

S&P lowered to BBB- from BBB, Enel Americas SA and Emgesa SA ESP. “The ratings on both entities are higher than on the sovereign, mainly because of the potential support they would receive in case of financial distress from their parent companies –– Enel SpA (BBB+/stable/A-2) in the case of Enel Americas, and Enel Americas for Emgesa,” the agency said in a press release.

S&P also downgraded AI Candelaria Spain to B+ from BB-. “This is because we still see a notch differential due to its total reliance on subordinated dividend payments from its sole investment, Ocensa, which distributes them after funding its operating and financial needs,” the agency said.

In addition, the agency affirmed Sociedad Concesionaria Vial Montes de Maria SAS’ AA rating with a stable outlook.

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