As Oil Suffers, Colombia Eyes Tough Time for Bond Offer

Colombia did sell a controlling stake in power generator Isagen to Canada's Brookfield for close to US$2bn in January, bringing in much needed investment flows.

But some worry that a downgrade is still on the cards, especially if the sovereign has not managed to push through the reforms by the second half of the year.

"The risk is on the political side," said Castro at Nomura. "If they don't get something meaningful approved, rating agencies could act."

Klaus Spielkamp, head of fixed income at Bulltick, thinks the market has already accepted it as given.

"The market has been pricing in a downgrade with a negative outlook," he told IFR.

"Anything different from that, such as downgrade with a stable outlook, will be positive for Colombia."

(Reporting by Paul Kilby; Editing by Marc Carnegie)


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