S&P Weigh In On Colombian Growth Prospects & Rating Outlook

S&P made comments on Colombia yesterday. They stated that Colombia should keep its investment grade if there is a significant growth rebound in 2021 and growth remains above 3.5%. S&P currently forecasts Colombia's economic growth to rebound to 6% this year and the expansion to remain above 3% in 2022 and 2023. Yesterday's Economic Activity fell 4.63%, slightly lower than -4.5% estimates.

• Negative outlook may improve if the economy is able to grow faster than what S&P forecasts.
• It's difficult to see a fiscal consolidation if the country is not able to grow.
• S&P currently have an October deadline, but a review may materialise before if there's relevant new information.
• For reference, both Fitch and Moody's have recently pushed back their sovereign rating reviews, in anticipation of fiscal reform legislation.