S&P ups Interconexion foreign currency outlook to positive

Standard & Poor's said it revised the foreign currency outlook on Interconexion Electrica SA ESP to positive from stable and affirmed the company's BBB local currency and BB foreign currency long-term corporate credit ratings. The local currency outlook remains stable.

The outlook revision follows S&P's revision of the outlook on the Republic of Colombia's BBB local and BB foreign currency sovereign ratings to positive from stable, which reflects the sovereign's better economic prospects coupled with continued improvements in the country's external indicators.

S&P said the ratings reflect the company's dominant position in Colombia's National Transmission System, its strategic importance for the Republic of Colombia, its natural monopoly, the government's ownership and expectations of stable financial performance during the next couple of years.

These strengths are mitigated by the risks of operating in the economic and political environment of Colombia, foreign-exchange risk related to its foreign-currency-denominated debt and its increased exposure to more volatile economies, the agency said.

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