BOGOTA, Jan. 31, 2016 /PRNewswire/ -- Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC; TSX: ECP) ("Ecopetrol" or the "Company")
reports that the risk rating agency Standard and Poors has
maintained Ecopetrol's long-term foreign currency rating at BBB and
has downgraded its outlook from stable to negative. Therefore, the
Company retains its investment grade rating.
In its report, Standard and Poors emphasizes the austerity and
cost efficiency measures taken by the Company to address and
mitigate the effects of the current low oil price environment. It
also notes the very high likelihood that, given Ecopetrol's
strategic importance for Colombia,
the Colombian government would provide assistance to the Company if
needed.
Standard and Poors deems the Company's liquidity resources over
the next 12 months to be adequate, estimating that the sources of
liquidity will exceed their uses 1.2 times, and believes the
Company will continue to have good access to financing resources
through the capital markets.
Finally, Ecopetrol's stand-alone credit profile, which does not
include the government's implicit support, was downgraded from bbb-
to bb. This decision was based on the expectation that the
Company's credit metrics will likely be weaker because of lower
hydrocarbon price assumptions by the rating agency.
The complete report is available for viewing on
http://www.standardandpoors.com/
Ecopetrol is the largest company in Colombia and is an integrated oil & gas
company; it is among the top 50 oil companies in the world and
among the four top ones in Latin
America. Besides Colombia -
where it generates over 60% of the national production - it has
exploration and production activities in Brazil, Peru
& the US (Gulf of Mexico).
Ecopetrol owns the largest refinery in Colombia and most of the pipeline and
multi-product pipeline network in the country, and is significantly
increasing its participation in bio-fuels.
This release contains statements that may be considered
forward looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. All forward-looking statements, whether made
in this release or in future filings or press releases or orally,
address matters that involve risks and uncertainties, including in
respect of the Company's prospects for growth and its ongoing
access to capital to fund the Company's business plan, among
others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
& gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, the
Company's competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
For further information, please contact:
Head of Corporate Finance and Investor Relations
Maria Catalina Escobar
Phone: +571-234-5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio
Tellez
Phone: +571-234-4329
e-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.