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...
