Colombia’s downgrade has been decided on the back of the continued slump in oil prices and the increasing short-term external debt which are affecting the country’s liquidity position. Colombia relies on hydrocarbon and coal exports for about half of its current account receipts, so falling prices for those commodities have affected its external balance. Indeed, the current account deficit increased from 3.3% of GDP in 2013 to 5.2% in 2014 and 6.2% in 2015. Moreover, recent downward revisions of oil price forecasts imply that the projected external deficit of 5.3% of GPD for 2016 may prove overoptimistic.