S&P lifts Ecopetrol stand-alone rating

S&P said it affirmed the BBB long-term corporate credit rating on Ecopetrol SA (Empresa Colombiana de Petroleos).

The outlook remains negative.

The agency also said it affirmed the BBB rating on its senior unsecured debt and raised the stand-alone credit profile on Ecopetrol to BB+ from BB.

The ratings reflect the very high likelihood that the Colombian government will provide timely and sufficient extraordinary support if Ecopetrol, the largest company in the country, becomes financially distressed, S&P said.

The company has a significant presence in Colombia's oil and gas sector and a very strong link with the government, which has controlling ownership and strategic oversight despite the company's independent management, the agency said.

Despite lower average production in 2016, the upgrade on the stand-alone credit profile reflects the company's reported better-than-expected key credit metrics, including positive discretionary cash flow, S&P said.

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