May 21, 2021 |
S&P Global Rating said it downgraded Colombia's long-term foreign currency rating to BB+ from BBB- on Wednesday, cutting the sovereign issuer to junk status on "persistent fiscal weakness."
The downgrade took place two weeks after the Colombian government of Colombia withdrew a proposed tax reform bill amid protests in many cities across the country.
"We believe Colombia's fiscal adjustment will prove to be more protracted and gradual than previously expected, diminishing the likelihood of r
Rating agency cites "persistent fiscal weakness" as a reason for the downgrade, but the government pledges to "strengthen" investor confidence