Fitch affirms Ecopetrol

Fitch Ratings said it has affirmed Ecopetrol SA's foreign and local currency issuer default ratings at BB+ and BBB-, respectively.

The outlook is stable.

According to Fitch, Ecopetrol's ratings are strongly linked with the credit profile of the Republic of Colombia (local and foreign currency ratings of BBB- and BB+, respectively), its majority shareholder.

This connection is based on the Colombian government's ownership of the company as well as its exposure to changes in regulation and receipt of subsidies from central government, the agency said, adding that Ecopetrol's capitalization process has separated somewhat, yet not entirely, the company from the government.

Fitch said that Ecopetrol's ratings are supported by the company's strong financial profile, sizable and stable reserves, steady production levels and dominant domestic market share.

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