RIO DE JANEIRO, BRAZIL – Moody’s rating agency announced today (06) its decision to maintain Colombia’s long-term foreign currency debt rating at Baa2 (equivalent to BBB on other international scales), one notch above investment grade.
Likewise, the rating agency announced that it improved the outlook of such credit rating from negative to stable.
Read also: Check out our coverage on Colombia
According to the entity, the affirmation of the ratings “is supported by the government’s record of prudence, macroeconomic management and capacity to generate consensus and promote policies that foster growth and support fiscal metrics.”
While the international rating agency acknowledged that the pandemic presents challenges and that the government has had to face “growing social tensions”, it highlighted that the government approved “fiscal measures that will support debt stabilization in the coming years, keeping Colombia’s credit metrics in line with those of its Baa2 rated peers.”
It also highlighted the economic recovery until this year, which it described as vital. Moody’s expectation that growth will remain robust in the coming years, reflecting “Colombia’s strong resilience to shocks.”
The Minister of Finance and Public Credit, José Manuel Restrepo, highlighted the vote of confidence given by the markets and local and foreign investors. “The maintenance of the investment-grade by Moody’s recognizes that great institutional strength of the country, of building consensus with a sense of greatness, as was achieved with the Social Investment Law, as well as having opened a constructive dialogue around social and fiscal sustainability and economic reactivation,” said the head of the Treasury portfolio.