Moody's Maintains Ecopetrol's Ba1 Global Credit Rating with Stable Outlook

Moody's Maintains Ecopetrol's Credit Rating

On February 24, 2025, Moody's Investors Service publicly announced that it has kept Ecopetrol S.A.'s global credit rating at Ba1, indicating a stable outlook for the company. Ecopetrol, recognized as the largest oil and gas producer in Colombia, holds a pivotal role in the energy sector of the Andean region.

Moody's assessment reflects Ecopetrol's operational strength, underscoring its control over 60% of Colombia's hydrocarbon production. This substantial market share positions the company as a cornerstone of the country's economy. Furthermore, Moody's also maintained the individual rating of the company at b1, indicating a robust financial standing.

The credit rating agency highlighted several key aspects of Ecopetrol's operations and its financial health. Notably, the rise in oil production levels and a decrease in the Fuel Price Stabilization Fund (FEPC) balance have bolstered Ecopetrol's liquidity, contributing positively to its credit profile. These developments suggest that Ecopetrol is efficiently navigating the dynamic market conditions, thereby strengthening investor confidence.

Moody's anticipates that Ecopetrol's fiscal obligations will continue to be managed effectively through established access to both Colombian and international capital markets, with additional support expected from governmental sources. This combination of factors ensures that the company remains well-positioned to manage its debts and sustainability initiatives.

Ecopetrol S.A. is not just a powerhouse in Colombia; it also ranks among the most significant integrated energy firms across the Americas. With a workforce exceeding 19,000 employees, the company's influence extends beyond oil and gas. Ecopetrol is actively involved in transportation, logistics, and refining of hydrocarbons and maintains competitive standings in petrochemical production and gas distribution.

The company has also embarked on strategic expansions, such as its acquisition of 51.4% of ISA's shares, which enhances its footprint in energy transmission and infrastructure management in Colombia and across Latin American countries. Ecopetrol is engaged in various drilling and exploration activities not only in Colombia but also in the geopolitically strategic areas of the United States (Permian Basin and Gulf of Mexico), and operations in Brazil and Mexico.

Moreover, affiliated companies like ISA and its subsidiaries solidify Ecopetrol’s standing in power transmission across Brazil, Chile, Peru, and Bolivia, and within telecommunications sectors in Chile. This diversification is a key strategic move, allowing Ecopetrol to mitigate risks associated with the volatile oil market.

While the positive outlook and ratings by Moody's serve as a testament to Ecopetrol's operational success, the company faces forward-looking challenges. Factors such as potential fluctuations in oil and gas market prices, regulatory changes, and the overall performance of Colombia's economy could impact future outcomes. Ecopetrol emphasizes the importance of adaptability in facing these uncertainties, reaffirming its commitment to transparency and strategic growth.

In summary, Moody's reaffirmation of Ecopetrol's Ba1 credit rating underscores the company's solid market position and operational efficiency. As Ecopetrol forges ahead in the energy sector, its ability to leverage its strengths will continue to shape its trajectory in both local and international markets.