S&P ups Ocensa note outlook to positive

Standard & Poor's said it revised the outlook on Oleoducto Central SA's ("Ocensa") tranche A debt to positive from stable and affirmed the BB rating on the notes.

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 BB long-term foreign currency rating on Ocensa's debt reflects the risk of a single source repayment (Ecopetrol S.A.'s contractual payments to Ocensa) and takes into account Ocensa's strategic importance to the Republic of Colombia through Ecopetrol, which holds a 35% stake in Ocensa's capital stock.

These strengths are offset in part by a potential increase in the number of guerilla attacks along the pipeline, which could lead to delays in crude shipments, and weaker-than-expected production at the Cusiana and Cupiagua oil fields, the agency said.

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