Likely To Lose Investment Grade Rating: Oxford Economics

Recent developments including the withdrawal of the tax bill and mass protests will likely cause a deterioration of the fiscal bill and consequently the loss of its investment grade credit rating, according to Oxford Economics.

• "President Duque now faces a choice between two bad options: stick to fiscal discipline and sacrifice his dwindling popularity ahead of next May's elections, or broaden tax exemptions and social spending, and in the process say goodbye to Colombia's investment grade rating," one economist wrote in a note.
• Debt-to-GDP forecast levels is seen remaining above the ceiling for an investment grade rating which means a downgrade seems inevitable.
• "While rating agencies may give Duque's government time to see how it recalibrates its proposed tax reforms, we expect the plans will be watered-down and re-presented in Q2, with rating downgrades following soon after". (Via BBG)