EPM Upgraded to BBB

Fitch has upgraded Colombian quasi-sovereign utility Empresas Publicas de Medellin (EPM) to BBB from BBB minus. This is set against a backdrop of improving macroeconomic conditions in Colombia and an absence of government intervention in the company, the agency adds. By investing in distribution companies outside of Colombia such as Panama, El Salvador and Guatemala, EPM has diversified cash flows and lowered the risk of intervention by its owner municipality of Medellin .For the last 12 months ending June 30 2011, the borrower reported a consolidated Ebitda of around $1.8bn against total consolidated financial debt of about $3.9bn.