Interconexión Eléctrica S.A. (ISA), majority-owned by Ecopetrol, saw its rating fall from ‘BBB’ to ‘BBB-’ in line with its parent but maintained a two-notch rating advantage attributed to geographic diversification across Latin America and a stable regulated transmission business. Fitch highlighted ISA’s autonomous financial management and robust cash flow predictability, supported by large investments totaling COP 22.2 trillion for 2025–2028, primarily in regulated transmission networks across Brazil (52%), Chile, Colombia, Peru, and Panama. The diversified portfolio reduces regulatory risk relative to a purely domestic exposure.
Other affected companies include Ocensa pipeline, downgraded from ‘BB+’ to ‘BB’ due to operational dependence on Ecopetrol’s crude production, and AI Candelaria, lowered to ‘BB-’ reflecting structural subordination risks linked to Ocensa’s debt. Grupo Energía Bogotá (GEB) and its subsidiary Transportadora de Gas Internacional (TGI) dropped to ‘BBB-’, with Fitch noting governance safeguards limiting value extraction by majority stakeholders but still reflecting local sovereign constraints. Enel Colombia’s rating also decreased to ‘BBB-’, with Fitch pointing out its high Colombian EBITDA concentration and limited legal protections.
Only Termocandelaria maintained its ‘BB’ rating. Fitch warned that worsening fiscal dynamics or governance shifts could further pressure ratings but did not forecast immediate changes. The downgrades imply increased refinancing costs and financing hurdles for Colombia’s energy sector amidst a challenging macroeconomic backdrop.
This article was curated and published as part of our South American energy market coverage.
