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S&P Global Cut Colombia Outlook to Negative

COLOMBIA
  • S&P Global Ratings lowered Colombia’s outlook to negative from stable, but maintained its BB+ rating - one notch below investment grade.
  • “Potentially persistently weak investor confidence — that affects private-sector investment — may pose risks to our expectation that GDP growth will return to its trend rate of just above 3% in the next couple of years,” Bloomberg cite S&P as saying.
  • According to Bloomberg, S&P said it could downgrade Colombia during the next two years if economic growth lags expectations, if large current account deficits worsen the nation’s external profile, or if public finances weaken. At the same time, the agency said it could stabilize the rating during the next 12-24 months if it sees less risk to Colombia’s expected trend economic growth.

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