Colombia Is Prepared for Any ‘Wave’ of Inflows, Echeverry Says
Colombia is prepared to manage any “excessive wave” of dollar inflows after the nation’s credit rating was raised to investment grade yesterday , Finance Minister Juan Carlos Echeverry said.
Standard & Poor’s raised Colombia one step to BBB-, from BB+. The increase puts Colombia’s rating in line with that of Brazil and Peru. The rating outlook is stable, S&P said.
“I would expect we have sufficient instruments to guarantee stability,” Echeverry told Bogota-based Caracol Radio in an interview today. The rating “is a vote of confidence” in the South American country, he said.
Colombian stocks, bonds and the peso gained today after S&P said the Andean nation has a “favorable” growth outlook and “resilient” economy. Moody’s Investors Service and Fitch Ratings both have a positive outlook on Colombia, suggesting there may be a change in their ratings soon, Echeverry said.
Moody’s and Fitch rate Colombia one level below investment grade.
The ratings change also may lend support to Colombia’s efforts to garner a free-trade agreement with the U.S., Echeverry said. In 2006, then-President George W. Bush signed the accord that has languished awaiting U.S. congressional action.
Foreign direct investment in Colombia more than tripled to $7.2 billion in 2009 from $2.1 billion in 2002, when former President Alvaro Uribe took office with pledges to repel guerrilla forces.
President Juan Manuel Santos, who took office in August, is sustaining security policies that are luring investment from billionaires Eike Batista and Carlos Slim, the Mexican businessman named by Forbes last week as the world’s richest person.
To contact the reporter on this story: Heather Walsh in Bogota at hlwalsh@bloomberg.net
To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net
Rate this Page