Colombia | The positive signs of the sovereign rating

Summary

Standard & Poor’s reaffirmed Colombia’s sovereign rating at BB+ with a negative outlook, highlighting economic recovery despite fiscal deterioration. The key now is sustainable growth, driven by investment. The next challenge will be Moody’s review, which still keeps Colombia at investment grade.

Key points

• Key points:
• Although there are signs of recovery, downside risks remain in economic activity and fiscal consolidation.
• Standard & Poor’s decision contrasted with the general concern over fiscal deterioration in recent months.
• Austerity programs will be key to containing the deficit and stabilizing finances.

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