Political Risk Latin America Blog @PolRiskLatam

Moody’s joins S&P and lifts Colombia’ credit rating to investment grade

Posted in News and Articles, Political Risk by politicalrisklatam on June 1, 2011

by Merco Press News, June 1st, 2011.

Colombia’s credit rating was raised to investment grade by Moody’s Investors Service, matching a move by Standard & Poor’s two months earlier, as economic growth accelerates and the threat posed by guerrilla groups and organized crime recedes.

Moody’s upgraded Colombia’s rating to Baa3, which is the lowest level of investment grade from Ba1. The move puts Colombia’s rating on par with Brazil, Peru and Panama with the outlook stable. Colombia was boosted to BBB- by S&P on March 16.

“Security concerns, historically a major issue for Colombia, have not disappeared, but have been waning after several major government wins against domestic guerrilla groups,” Moody’s said in a statement accompanying its decision.

Colombia recovered its investment-grade ratings from Moody’s and S&P 11 years after it was cut to junk when insurgent violence and a banking crisis helped trigger six straight quarters of economic contraction between 1998 and 1999. Fitch Ratings rates Colombia’s foreign bonds BB+, one level below investment grade.(continue reading… )


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: