Standard & Poor’s removed Colombia’s investment grade in May 2021 by downgrading the long-term foreign currency note to BB+, while Fitch Ratings did so in July by downgrading the risk rating to BB+ from BBB- due to the increase of fiscal deficitthe public debt and the uncertainty of the impact of the pandemic Covid-19 in your economy.
The Standard & Poor’s and Fitch Ratings announcements came amid social protests against the former president’s government Ivan Duke who presented a tax reform which he later withdrew and sought to raise taxes.
For its part, the rating agency Moody’s maintained the investment grade of the fourth largest economy in Latin America at Baa2 with a negative outlook.
Fitch recently said that it welcomed the proposal to raise an additional 25 billion pesos (5,671 million dollars) presented to the Congress by the president Gustavo Petroalthough he said the tax reform is unlikely to have an immediate effect on the ratings.
Petro, a 62-year-old economist who took office this month as the first leftist president in Colombia’s history, promised ambitious economic and social programs to fight hunger, poverty and the inequalitywhich is why it seeks resources with the tax reform that Congress must approve, where it built a majority in alliance with several parties.
The meeting that Ocampo will hold with representatives of the three risk rating agencies will be in New York in mid-September.
Source: Ambito
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