LatinNews Daily - 20 May 2021

In brief: S&P downgrades Colombia’s credit rating to below investment grade

* International credit ratings agency Standard & Poor’s (S&P) has downgraded Colombia’s foreign currency sovereign credit rating from ‘BBB-’ to ‘BB+’ with a ‘stable’ outlook. Colombia's credit rating is now below investment grade for the first time in over a decade. A note from S&P explained that the reclassification was made after mass protests forced the government to withdraw its tax reform bill, “which has resulted in a significantly lower likelihood of Colombia improving its fiscal position following a recent and marked deterioration”. The credit ratings agency explained the ‘stable’ outlook as a result of “our expectation for an institutional solution to recent and significant social unrest”. Whilst noting that “Colombia’s rating fundamentals remain weaker than those of similarly rated peers”, S&P said that the country is still creditworthy on account of its monetary policy, its flexible credit line with the International Monetary Fund (IMF), and access to international debt markets.

End of preview - This article contains approximately 154 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.