Summary by Moomoo AI
Ecopetrol S.A., Colombia's largest oil and gas producer, has experienced a downgrade in its global credit rating by Moody's from Baa3 to Ba1, with the outlook shifting from negative to stable. The downgrade, announced on May 22, 2024, also included a reduction in the individual rating from Ba3 to B1. Moody's based its decision on a review of Ecopetrol's debt management, dividend distribution, and cash generation expectations for 2025. Despite the downgrade, Moody's acknowledges Ecopetrol's strong position in the Colombian and Latin American energy markets, its stable cash flow from subsidiaries, and the support of the Colombian government. The company's overall rating remains three levels above its individual rating, indicating confidence in its ability to meet financial obligations. Ecopetrol, with over 18,000 employees, is a key player in the integrated energy sector of the Americas, holding significant stakes in various energy and infrastructure projects across the continent.