UPDATE 1-Colombia will work to keep investor confidence after ratings cut -minister
(Adds context on credit downgrade)
BOGOTA, May 19 (Reuters) – Colombia will work to maintain market confidence in its finances, Finance Minister Jose Manuel Restrepo said on Wednesday, after S&P Global Rating relegated its credit rating to junk bond status.
S&P Global Ratings lowered its long-term foreign currency rating on Colombia to BB-plus from BBB-minus, saying it believes the Andean country’s fiscal adjustment will be more protracted and gradual than previously expected.
The rating agency said Colombia’s outlook “is stable, reflecting our view that economic recovery, coupled with certain fiscal measures, will stabilize the government’s recently worsening debt burden over the coming two to three years.”
Colombia will accelerate economic growth and job creation, as well as bring stability to public finances, and secure funding for aid programs, Restrepo said.