S&P: Three Colombian corporates to negative

Standard & Poor's said revised its outlook on Grupo de Inversiones Suramericana SA, Emgesa SA ESP and Interconexion Electrica SA ESP (ISA) to negative from stable and affirmed its BBB long-term credit ratings on all three companies.

S&P said the outlook revisions follow a similar rating action on the Republic of Colombia (foreign currency: BBB/negative/A-2; local currency: BBB+/negative/A-2).

The agency believes that these companies won't overcome a sovereign default stress test scenario, which makes it highly unlikely for any of them to remain at their current rating level, if S&P were to lower the sovereign FC rating. Ultimately, if a sovereign's FC default occurs, there is a high likelihood that the three companies would default as well.

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