Moody’s Confirms Bogota’s Ratings

American risk-assessment firm Moody's Investors Service, confirmed this year Bogota’s issuer and debt Baa2 ratings which, according to the report, reflect “a diversified economic base supporting high own-source revenues, and strong liquidity position”.

This year’s rating outlook is stable, in line with results from the last period, when Bogota’s own-source revenues represented 69.8% of total revenues, a level that compares well to international peers.

According to the document, published by the Finance Superintendence, Bogota's net direct and indirect debt was equivalent to a moderate 16.5% of total revenues, and it is expected to increase in the medium-term. "Bogota will develop major infrastructure projects to improve its current mass transit system and will issue $3.8 million USD."

Moody´s highlighted the following as Bogota’s credit strengths: strong governance and management practices, diversified and relatively solid economic foundations supporting high own-source revenues, and strong liquidity position. As for the city’s credit challenges, the firm included last years’ unbalanced financial results and increasing debt levels.