...Increased M&A Activity: Colombia has been the third-most vibrant market for mergers and acquisitions (M&A) during the past few years, following only Brazil and Mexico. Fitch-rated corporates have been at the forefront of this activity, buying companies and assets both in the local market and in the rest of Latin America, and to a lesser extent in the U.S.A. Credit Profiles Remain Intact: The credit risk profiles of Colombian corporates that have engaged in M&A activity have not weakened to a degree that would necessitate downgrades. In all cases, companies have implemented a set of conservative criteria to select their investment objectives, seeking to enhance geographic and product diversification in selected markets. Macro Conditions Drive Growth: Growing corporate cash flows and a positive business environment have been driving factors in M&A activity. Cash flow growth is driven by the Colombian economy, which was resilient to the global financial crisis and has grown by around 4% per...
