S&P Upgrades Colombia to Investment Grade

S&P has upgraded Colombia’s sovereign ratings to BBB minus/A-3 from BB+/B, bringing it to investment grade territory. The outlook is stable. S&P cites the growing resilience of Colombia’s economy to withstand external shocks and political consensus on market-oriented economic policies. “The country’s overall net external creditor position is projected to strengthen modestly in the coming years, while the public sector’s debt burden – as measured by its share of GDP – will likely stabilize,” the agency says. S&P is the first of the rating agencies to promote Colombia to investment grade, but Moody’s and Fitch are expected to do so soon. “We expect Fitch and Moody’s to give Colombia an investment grade rating before the end of the first quarter,” says Bancolombia. Moody’s has said it could upgrade Colombia before the summer. It has a Ba1 rating for the sovereign. Fitch, meanwhile, has said that it is assessing the effect of rising oil and mining production on Colombia’s fiscal and external accounts. It has a BB+ rating for Colombia.