S&P raises Ocensa

Standard & Poor's noted that it revised its long-term foreign currency rating on Oleoducto Central SA's (Ocensa) tranche A debt to BB+ from BB.

The outlook is stable.

The rating action follows S&P's decision to raise the long-term foreign currency rating on the Republic of Colombia to BB+ from BB, which is supported by the sovereign's improved economic prospects along with lower debt and reduced external vulnerabilities.

According to the agency, the rating on Ocensa's debt reflects the risk of Ecopetrol SA (not rated) as the single source of repayment.

S&P added that this reflects its perception that the state-owned oil company's creditworthiness is highly related to that of the sovereign due to the government's ownership in Ecopetrol, the importance of the company to public sector revenues and to the country's economy and the government's considerable oversight of the company's activities.

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