S&P: Ecopetrol, Centragas, Transgas views to positive

Standard & Poor's said it revised the outlook to positive from stable on Ecopetrol SA and pipeline projects Centragas - Transportadora de Gas de la Region Central de AP Gasoductos Administracion & Cia. SCA and TransGas de Occidente SA. The agency also said it affirmed the BB+ corporate credit rating on Ecopetrol and the BB+ ratings on Centragas' and Transgas' respective $172 million and $240 million notes due 2010.

The outlook revision followed the recent revision of the foreign-currency outlook on the Republic of Colombia to positive from stable, while affirming its BB+ foreign-currency and BBB+ ratings.

The positive outlook on Colombia reflects the likelihood of an upgrade if the next administration, led by president-elect Juan Manuel Santos, pursues policies that strengthen the growing resilience of the economy, S&P said.

The outlook revision on Ecopetrol results from the high likelihood that the government of Colombia would provide timely and sufficient extraordinary support to the company in the event of financial distress, S&P said, and from its stand-alone credit profile.

The foreign-currency ratings on Centragas' and Transgas' notes reflect the position of majority state-owned Ecopetrol as the single source of repayment, the agency said, and the projects' adequate liquidity position relative to debt.

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