Moody's assigns Baa3 to Ecopetrol notes

Moody's Investors Service said it gave a Baa3 rating to Ecopetrol SA's planned global notes for up to $2 billion. The company's other Baa3 ratings are unchanged.

The proceeds will be used to strengthen the balance sheet of Ecopetrol by refinancing part of the company's debt, including the repayment of a portion of the two-year $3.7 billion bridge loan used to fund the acquisition of 51.4% of Interconexion Electrica SA ESP.

“We expect that the credit metrics of the company will not materially change after the bond issuance, and we believe this transaction will reduce the company's refinancing and liquidity risk,” Moody’s said in a press release.

The outlook is negative.

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