Moody's Affirms Ecopetrol's Global and Standalone Credit Ratings

Core Viewpoint - Ecopetrol S.A. has received an affirmation of its global credit rating at Ba1 with a stable outlook from Moody's, reflecting its strong position in the oil and gas sector in Colombia and Latin America [1][2]. Group 1: Credit Rating and Financial Strength - Moody's Ba1 global rating indicates Ecopetrol's leading role as Colombia's primary oil and gas producer and its significant power transmission operations [2]. - The global rating is three notches above the standalone rating due to government support through the phase-out of fuel subsidies and improved liquidity from reduced accounts receivable related to the Fuel Price Stabilization Fund (FEPC) [3]. - The standalone rating highlights the stability of Ecopetrol's cash flow, bolstered by its power transmission subsidiary (ISA) and midstream affiliates, which contributed 18% to EBITDA in 2024 [4]. Group 2: Company Overview and Operations - Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production and holding key positions in petrochemicals and gas distribution [4]. - The company has a 51.4% stake in ISA, engaging in energy transmission and managing real-time systems, along with road concessions [4]. - Internationally, Ecopetrol operates in strategic basins across the Americas, including the Permian basin and the Gulf of Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [4].