Fitch Rates Ecopetrol's USD1B Note Issuance 'BB+'

NEW YORK--(Business Wire)--
Fitch Ratings has assigned a 'BB+' rating to Ecopetrol S.A.'s (Ecopetrol)
proposed issuance of at least USD1 billion senior unsecured notes due 2019.
Proceeds will be used for investments and general corporate purposes.

Ecopetrol's ratings are linked with the credit profile of the Republic of
Colombia (local and foreign currency ratings of 'BBB-' and 'BB+', respectively,
by Fitch), which owns 89.9% of the company's total capital. The company is also
linked closely with the Colombian government through its exposure to changes in
regulation and its receipt of subsidies from the central government in the past
and potentially in the future.

On a standalone basis, Ecopetrol maintains a strong financial profile. Its
reserves are sizable and stable, and its production levels have been increasing.
These factors, plus its dominant domestic market share, allow the company to
generate consistently strong cash flows from operations and meet its obligations
in a timely manner. Like other companies in this sector, Ecopetrol is vulnerable
to fluctuations in international commodity prices and tightening environmental
regulations requiring material investment in downstream operations.

Due to changes made by the government in 2003 prompted by the company, Ecopetrol
has had to compete for new exploratory rights. This has resulted in high
exploration and production (E&P) expenses due to a competitive bidding process
and high capital expenditures that are required to increase and maintain
reserves. This has resulted in Ecopetrol having the largest acreage in Colombia
and establishing a very aggressive capital expenditure and investment program of
approximately USD60 billion from 2008 to 2015 including USD6.2 billion in 2009.

The company plans to finance its capital expenditure program using internal cash
flow generation, debt issuances as well as a possible secondary equity offering,
which could increase the company's total floating capital to 20%, as per law
1118 of 2006 the government's stake cannot be diluted to less than 80%. Fitch
Ratings expects leverage, as measured by total adjusted debt (including
off-balance sheet debt) to EBTIDA, to range between 2.0 times (x) and 2.5x over
the medium term.

Ecopetrol is a vertically integrated oil company owned by the Colombian
government (approximately 89.9%). The company's activities include exploration
for and production of crude oil and natural gas, as well as refining,
transportation, distribution and marketing of refined products. Ecopetrol is
Latin America's fourth-largest integrated oil company with hydrocarbon
production during 2008 of 447,000 boe per day, refining capacity of 335,000 bpd
and proved reserves of 1.14 billion boe.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Jose Luis Villanueva, +1-212-908-9158 (New York)
Lucas Aristizabal, +1-312-368-3260 (Chicago)
Media Relations
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com
Cindy Stoller, +1-212-908-0526 (New York)
cindy.stoller@fitchratings.com

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