S&P Global Ratings has taken a significant step in its assessment of EcoPetrol S.A. (ECOPETROL EC), the "Company", announcing a downgrade of its global credit rating while affirming the Stand-Alone Credit Profile (SACP). This update, released on June 27, 2025, reflects a reduction from BB+ to BB, accompanied by a maintained negative outlook. This action is directly linked to S&P Global Ratings’ earlier decision to downgrade the Republic of Colombia’s sovereign credit rating on June 26, 2025. Simultaneously, the agency has affirmed EcoPetrol’s SACP at bb+, demonstrating a nuanced assessment of the company’s financial standing relative to the broader Colombian economic landscape. S&P’s rationale centers on the interconnectedness of EcoPetrol’s performance with that of the nation, recognizing its vital role in Colombia’s revenue generation, its status as a government-related entity, and its contribution to the country’s energy transition strategy. The negative outlook mirrors the sovereign’s own negative outlook, highlighting potential risks associated with the Colombian economy.
Regarding the SACP, S&P anticipates EcoPetrol will maintain a leverage ratio (debt/EBITDA) between 2.0x and 2.5x, with an EBITDA margin projected to remain close to 40%. This projection underscores the company’s operational efficiency and financial discipline, key factors in the agency’s assessment. Furthermore, S&P positively highlighted EcoPetrol’s 2040 strategy, a forward-looking initiative designed to capitalize on growth opportunities, effectively manage reserve replacement, optimize the operational availability of its refineries, and diversify its investment portfolio through strategic business expansion. This demonstrates a commitment to long-term sustainability and adaptability within a dynamic energy sector.
EcoPetrol’s significant presence within Colombia—representing over 60% of hydrocarbon production across transportation, logistics, and refining systems—combined with leadership positions in petrochemicals and gas distribution, solidifies its importance to the national economy. The acquisition of 51.4% of ISA’s shares further expands EcoPetrol’s influence, granting it participation in energy transmission, real-time systems management (XM), and the Barranquilla - Cartagena coastal highway concession.
On an international scale, EcoPetrol maintains strategic investments in key American basins, conducting Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico. Through ISA and its subsidiaries, the company holds leading positions in the power transmission business across Brazil, Chile, Peru, and Bolivia, alongside road concessions in Chile, and a presence in the telecommunications sector.
The release contains forward-looking statements subject to risks, including fluctuations in oil & gas prices, exploration and production activities, market conditions, regulatory changes, exchange rates, and the overall performance of Colombia’s economy and industry. EcoPetrol’s management does not assume an obligation to update these statements. For media inquiries, please contact: Head of Capital Markets Carolina Tovar Aragó́n Email: [email protected] Head of Corporate Communications ( Colombia ) Marcela Ulooa Email: [email protected] SOURCE EcoPetrol S.A. Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock – anytime. © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
