Moody's Affirms Ecopetrol's Credit Ratings
On June 27, 2025, Moody's Investors Service announced its decision to affirm Ecopetrol S.A.'s (NYSE: EC) global credit rating at Ba1, maintaining a stable outlook. This rating reinforces Ecopetrol's status as the foremost oil and gas producer in Colombia and emphasizes its significant role in energy transmission across Latin America.
The affirmation is indicative of several key factors that underpin Ecopetrol's financial health. The rating reflects not only the company’s robust market position but also the steady backing it receives from the Colombian government. Part of this government support comes from the gradual phase-out of fuel subsidies and the improvement in the company’s liquidity due to a reduction in accounts receivable linked to the Fuel Price Stabilization Fund (FEPC).
Moody's also acknowledged Ecopetrol's standalone rating at b1, which highlights its solid cash flows. This stability is supplemented by contributions from its power transmission subsidiary, Interconexión Eléctrica S.A. (ISA), and various midstream affiliates, which collectively represented 18% of Ecopetrol's EBITDA reported in 2024.
Ecopetrol, the largest organization in Colombia, possesses a workforce exceeding 19,000 employees, and is responsible for over 60% of the national hydrocarbon production. The company leads in several critical segments, including petrochemicals and gas distribution. Notably, in the strategic acquisition of 51.4% of ISA's shares, Ecopetrol has expanded its reach in energy transmission, which includes real-time systems management and highway concessions.
Internationally, Ecopetrol has made substantial inroads in strategic basins in North America, particularly with drilling and exploration operations in the USA (namely the Permian Basin and the Gulf of Mexico), Brazil, and Mexico. Through its partnership with ISA and subsidiaries, Ecopetrol holds a formidable presence in power transmission throughout Brazil, Chile, Peru, and Bolivia, and is involved in road and telecommunications projects in Chile.
The outlook remains stable as the company continues to manage liquidity and maintain its operational efficiency. As stated in the release from Moody’s, there are forward-looking statements regarding Ecopetrol’s future performance and growth prospects. These prospects, however, come with inherent risks and uncertainties related to market conditions, regulations, and economic factors affecting the company's competitiveness.
In summary, Moody's affirmation of Ecopetrol’s credit ratings serves as a strong endorsement of the company's financial stability and market position in the energy sector of Colombia and beyond. Investors and market participants can find solace in the stability provided by Moody's rating and Ecopetrol's comprehensive strategy to sustain its leadership in the oil and gas industry. For more detailed insights, the full report is available on the Moody's website
here.