Fitch Upgrades Ecopetrol's FC & LC IDRs to 'BBB-'/'BBB'; Outlook Stable.

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Fitch Ratings has upgraded Ecopetrol S.A.'s foreign and local currency Issuer Default Ratings (IDRs) to 'BBB-' and 'BBB', respectively, from 'BB+' and 'BBB-'. This rating action affects approximately USD1.5 billion of debt due 2019. The Rating Outlook is stable.

This rating action follows yesterday's upgrade of Colombia's sovereign foreign and local currency ratings to 'BBB-' and 'BBB', respectively. Colombia's upgrade to investment grade is supported by its track record of prudent economic policies, demonstrated resilience to external and domestic shocks, as well as its strengthened external liquidity position. Moreover, the administration of President Santos has moved forward a reform agenda to strengthen the credibility and predictability of public finances and enhance the country's growth trajectory.

Ecopetrol's ratings reflect its strong financial profile, improving production capacity and adequate reserve levels. Ecopetrol's growth strategy and associated capital investment are considered aggressive. The company is expected to maintain a financial and credit profile consistent with the assigned rating while it implements its growth strategy. The company's ratings also reflect the close linkage with the Republic of Colombia, which currently owns 89.9% of the company and appoints the majority of the board of director members according to established corporate governance policies.