S&P Lifts Colombia

S&P has lifted Colombia’s rating to BBB from BBB minus, it says. The agency cites positive trends in economic growth, as well as monetary policy and fiscal measures that better insulate it against external shocks, as among the factors in the ratings raise. “The government has taken advantage of recent years of favorable commodity prices to undertake structural changes in fiscal policy, establish a fund to save above-budgeted revenues from the commodities sector, improve its debt profile, and develop its domestic capital markets,” S&P says. The agency also expects continuity in pro-investor economic policies after the 2014 national elections, thanks to a political consensus in favor of market-oriented policies. The outlook is stable. The move may help the country’s bonds, Nomura says, pushing yields on its 10-year closer to LatAm triple-B peers. It spots the bond trading to yield 2.99%, compared to Brazil at 2.70%, Peru at 2.87% and Mexico at 2.40%.