Moody’s Contradicts Colombia Claim That it Affirmed Baa2 Rating

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Moody’s Investors Service says its didn’t take any ratings action on Colombia, contradicting statements by the government that it affirmed the nation’s Baa2 credit rating on Tuesday.

“The rating wasn’t affirmed,” said Mauro Leos associate managing director for the Americas at Moody’s, in reply to written questions. “That only happens when a sovereign committee meets, which didn’t happen on this occasion.”

On Tuesday, the Finance Ministry sent out a statement saying that Moody’s had affirmed its rating and stable outlook due to Colombia’s resilient economy and prudent economic policies. The presidency and Public Credit Director Cesar Arias put out tweets celebrating Moody’s confidence in the country.

The Finance Ministry didn’t reply to written requests for comment.

Moody’s did publish two documents on Colombia on Tuesday, though neither contained any ratings action. The ratings agency praised Colombia’s “history of predictable macroeconomic policies and a solid track record of servicing debt,” while adding that its fiscal position is weaker than most of its peers. Moody’s forecasts growth of 4.2% next year after a contraction of 5.5% in 2020.

Colombia is rated Baa2 by Moody’s, the equivalent of BBB, while Fitch Ratings and Standard & Poor’s rate the country one notch above junk.

©2020 Bloomberg L.P.

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