Fitch Ups Bogota’s Outlook

Fitch has improved Bogota’s outlook to positive from stable, after a similar action was taken 2 weeks ago on Colombia’s risk. Fitch has affirmed the BB+ long term foreign currency rating, and the BBB minus long term local currency debt rating of Bogota. This reflects the district’s strong fiscal management, consistent budgetary surplus position, affordable debt, highly valuable assets and strong socio-economic profile. However, Fitch cites high unemployment rates, increasing social and infrastructure needs of a growing population and contingent liabilities regarding pension and retirement payments of employees as potential limitations. The district’s economy, following the same trend as Colombia, remained almost flat in 2009, but growth is expected to reach rates above 4% for 2010 and 2011.