...November 19, 2024 Our 'B+' issue rating on A.I. Candelaria Spain's debt continues to incorporate its subordinated nature as it relies on dividend payments from Oleoducto Central (OCENSA; ##+/Negative/--). Also, since OCENSA is Candelaria's sole investment and OCENSA is not publicly traded, we believe it could be difficult for Candelaria to liquidate its stake in OCENSA, if needed, and for us to forecast asset valuation relative to debt with certainty. On the other hand, we expect the dividends that Candelaria receives from OCENSA to be stable and more than sufficient to cover operating and financial needs. OCENSA is the main oil transporter in Colombia, and its off-takers, mainly Ecopetrol S.A. (##+/Negative/--), are strong counterparties. Ecopetrol is also Candelaria's ultimate parent. Our 'B+' rating on Candelaria's senior secured notes also incorporates the share pledge on its 27.352% equity interest in OCENSA. Despite a tariff freeze that was lifted in September 2024, OCENSA maintained...
