By Zach Fuchs
Local-currency sovereign issues generally give a boost to creditworthiness because they reduce a country’s exposure to FX movements. But even though Colombia has been aggressive in reducing its hard-currency bonds as a proportion of government debt – from 50% to 30% in two years – it is now just one notch away from slipping out of investment-grade territory in its local currency rating.
Moody’s Investors Service pushed Colombia’s domestic currency bond rating down to Baa3 from Baa2 at the end of June, although the country’s other ratings held firm. According to Steven Hess, a senior credit officer at Moody’s, the downgrade has nothing to do with Colombia’s fundamentals. “We’re fixing some ratings that were based on an older methodology,” he says.
This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
Are you already registered? If so, please enter your username and password here to continue.
Know your email address?
Click here for your password.
Questions about your subscription status?
Email us or call: +44 (0) 20 7779 8888
Subscribers to Euromoney benefit from:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000.
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
Click here to subscribe