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Fitch downgraded Colombia to junk, becoming the second major rating agency to do so. Colombian markets came under pressure as the premium investors demand over U.S. Treasuries rose 5 bps to 255 bps, its highest since October 2020.
Five-year credit default swaps widened 6 bps to 143 bps and the peso weakened as much as 0.6% before trimming losses.
A sovereign downgrade to junk raises Colombia's borrowing costs and pressures the peso, which tends to lift USD/COP and can weigh on domestic financial conditions. For feed buyers the direct grain impact is small, though a weaker peso can make imported feed inputs more expensive for Colombian producers.
financialpost.comReutersJul 2, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
