Moody’s rates Ecopetrol note add-on Baa3

Moody's Investors Service said it assigned a Baa3 rating to Ecopetrol SA's proposed $500 million add-on notes to its 5 7/8% senior unsecured notes due in September 2023.

The original notes issued in September 2013 will now total $1.8 billion, including the proposed add-on.

Proceeds will be used for capital expenditures and other general corporate purposes.

The outlook is negative.

Moody’s said the Baa3 senior unsecured ratings and its ba3 baseline credit assessment reflect Ecopetrol’s status as Colombia's leading oil and gas producer, accounting for about two-thirds of the country's production and 100% of the supply of oil products, and the size of its operations, which benefits from having valuable assets that can be relatively easily monetized.

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