Ecopetrol (EC) Downgraded at Moody’s, Outlook Revised to Negative

Ecopetrol S.A. (NYSE:EC) is included among the 10 Best Energy Stocks to Buy Under $20 According to Billionaires.

With a workforce of over 18,000, Ecopetrol S.A. (NYSE:EC) is among the largest companies in Colombia and one of the leading integrated energy groups on the American continent.

On May 6, the credit rating agency Moody’s downgraded Ecopetrol S.A. (NYSE:EC)’s global credit rating from Ba1 to Ba2, while also revising its outlook from stable to negative. However, the agency affirmed the company’s Baseline Credit Assessment (BCA), or stand‑alone credit profile, at b1, highlighting its intrinsic strength.

According to Moody’s, the downgrade is primarily driven by a more cautious assessment of support from the Government of Colombia. This stems from the rising concerns regarding potential government interference and reduced clarity regarding the timeliness and predictability of support mechanisms, especially those tied to the Fuel Price Stabilization Fund (FEPC).

Conversely, Moody’s reaffirmed Ecopetrol S.A. (NYSE:EC)’s BCA at b1, citing the company’s solid position as the leading integrated oil and gas company in Colombia. This assessment is supported by Ecopetrol’s diversified operations, moderate leverage levels, solid liquidity, and its key role in ensuring the South American country’s energy supply.

READ NEXT: 10 Best Electrical Infrastructure Stocks to Buy According to Hedge Funds and 10 Best Fortune 500 Stocks to Buy According to Analysts

Disclosure: None. Follow Insider Monkey on Google News.