Moody's Affirms Ecopetrol's Global and Standalone Credit Ratings

Rhea-AI Summary

Ecopetrol (NYSE: EC), Colombia's largest integrated energy company, received confirmation of its Ba1 global credit rating with a stable outlook from Moody's. The agency also affirmed the company's standalone rating at b1.

The Ba1 rating, which sits three notches above the standalone rating, reflects Ecopetrol's dominant position as Colombia's leading oil and gas producer and its significant power transmission business. The rating is supported by the Colombian government's backing through fuel subsidy phase-outs and reduced accounts receivable from the Fuel Price Stabilization Fund (FEPC). Notably, the company's power transmission subsidiary (ISA) and midstream affiliates contributed 18% to EBITDA in 2024.

Positive

• Affirmation of Ba1 global credit rating with stable outlook
• Strong government support through fuel subsidy phase-outs
• Reduction in accounts receivable from Fuel Price Stabilization Fund
• Diversified revenue stream with 18% EBITDA contribution from power transmission and midstream operations
• Leading market position with 60% of Colombia's hydrocarbon production

Negative

• Standalone rating (b1) remains three notches below global rating, indicating dependency on government support
• Exposure to oil & gas market price volatility

News Market Reaction – EC

-0.90%

1 alert

-0.90% News Effect

On the day this news was published, EC declined 0.90%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BOGOTA, Colombia, June 27, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the "Company" or "Ecopetrol") announces that the credit rating agency Moody's has affirmed the Company's global credit rating at Ba1 with a stable outlook. The agency also confirmed Ecopetrol's standalone rating at b1.

Moody's stated that the Ba1 global rating reflects Ecopetrol's position as Colombia's leading oil and gas producer, as well as its significant power transmission business in Colombia and other Latin American countries.

The aforementioned factors support a global rating that is three notches above the Company's standalone rating, including the backing of the Colombian government through the gradual phase-out of fuel subsidies, as well as the reduction in accounts receivable related to the Fuel Price Stabilization Fund (FEPC), both of which have contributed to strengthening the Company's liquidity.

Regarding the standalone rating, Moody's highlighted the strength and stability of the Company's cash flow, further supported by its power transmission subsidiary (ISA) and midstream affiliates, which together contributed 18% to EBITDA in 2024.

The report issued by the rating agency on June 27, 2025, announcing the rating affirmation, can be accessed in the link below:

https://www.moodys.com/research/docid--PR_509243 

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. 

For more information, please contact:

Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co  

Head of Corporate Communications (Colombia) 
Marcela Ulloa 
Email: marcela.ulloa@ecopetrol.com.co  

View original content:https://www.prnewswire.com/news-releases/moodys-affirms-ecopetrols-global-and-standalone-credit-ratings-302493748.html

SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's (NYSE: EC) current Moody's credit rating?

Moody's affirmed Ecopetrol's Ba1 global credit rating with a stable outlook, while maintaining its standalone rating at b1.

How does government support affect Ecopetrol's credit rating?

Government support through fuel subsidy phase-outs and reduced FEPC receivables helps maintain Ecopetrol's Ba1 rating three notches above its standalone rating.

What percentage of EBITDA comes from Ecopetrol's non-oil operations?

Ecopetrol's power transmission subsidiary (ISA) and midstream affiliates contributed 18% to EBITDA in 2024.

What is Ecopetrol's market position in Colombia?

Ecopetrol is Colombia's largest company, controlling over 60% of hydrocarbon production and holding leading positions in petrochemicals and gas distribution.

What international operations does Ecopetrol have?

Ecopetrol operates in the US Permian Basin and Gulf of Mexico, Brazil, and Mexico for drilling and exploration, plus power transmission operations in Brazil, Chile, Peru, and Bolivia through ISA.