Fitch revises Colombian corporates to stable

Fitch Ratings said it various actions on some Colombian corporates following the country's sovereign outlook revision to stable from negative:

• Ecopetrol SA: Long-term foreign currency issuer default rating affirmed at BBB, outlook revised to stable from negative; and long-term local currency issuer default rating affirmed at BBB, outlook revised to stable from negative;

• Empresas Publicas de Medellin ESP: Long-term foreign currency issuer default rating affirmed at BBB+, outlook revised to stable from negative; and

• Interconexion Electrica SA ESP: Long-term foreign currency issuer default rating affirmed at BBB+, outlook revised to stable from negative.

Fitch said the actions reflect the recent Colombian sovereign outlook revision to stable from negative. The outlook revision reflects the reduction in macroeconomic imbalances as a result of the sharp reduction in the current account deficit, diminished uncertainties surrounding Colombia's fiscal consolidation path due to passage of tax reform measures in December 2016, and the expectation that inflation converges towards the central bank's target.

The disciplined policy response to increased pressures following the slump in commodity prices should help in keeping macroeconomic imbalances in check during the forecast period, the agency added.

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