Moody’s Positive on Colombia

Moody’s has upped the outlook on Colombia’s Ba1 rating to positive from stable. It says the main drivers for the brighter view are improved prospects for structural fiscal consolidation, favorable medium-term prospects in oil production and the ability to navigate the global crisis and manage the negative impact of difficult trade relations with Venezuela without sustained damage. Francisco Chaves, a strategist at Colombian research shop Corredores Asociados says this is “the first step leading to an upgrade, which could take between 6-8 months.” In July, S&P, which has a BB minus rating for the sovereign, also lifted Colombia’s outlook to positive.