Colombia's Credit Rating Increased to BB+ By S&P

By Andrea Jaramillo

March 5, 2007 (Bloomberg) -- Colombia's foreign credit rating was raised to BB+, one level below investment grade, by Standard & Poor's as economic growth boosts tax revenue. S&P said its outlook on Colombia's rating is stable.

"The upgrade is supported by Colombia's significantly improved growth prospects and fiscal performance,'' S&P analyst Richard Francis said in a statement. "Colombia has enjoyed robust economic growth while boosting tax receipts and administering a better tax administration.''

Colombia's economy is growing at the fastest pace in almost three decades. The Finance Ministry estimates its budget deficit was close to zero in 2006.

S&P also raised the nation's long-term local currency debt rating to BBB+ from BBB.

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Andrea Jaramillo in Bogota at

Last Updated: March 5, 2007 18:24 EST