The decision by rating agency Standard & Poor’s to move Colombia up to investment grade “is like having a certificate of good conduct,” says President Juan Manuel Santos, Spanish news agency EFE reported Thursday.
Standard & Poor’s on Wednesday lifted Colombia into investment-grade rating, saying the South American nation’s economy has displayed resilience against external shocks, while growth prospects should contain the public sector’s debt burden.
The Colombian president explained that in practice this rating allows for companies, pension funds and public institutions to invest their resources in Colombia, which in turn will reduce the countries’ capital costs.
“From this moment on it is going to be cheaper (for the nation and for businesses) to have access to credit and this is going to have a very positive impact on the economy,” Santos said.
He added that “the rating reflects the country’s political stability and market-oriented policies.”
According to the president, it indicates that there is strength in the country’s revenues “that will balance the increase in health spending and in the poverty infrastructure which is diminishing GDP growth and the high social and economic cost to combat the continuing conflicts within the country. “
Following the move by Standard & Poor’s, the first to give the investment rating to the country, it is expected that other agencies such as Moody’s and Fitch Ratings also will raise their rating for Colombia.
