Latin America in focus: Colombia's credit hat-trick

Fitch Ratings becomes the third agency to raise theColombia's debt to investment grade.

NEW YORK (CNN) -- -- After decades of social, political and economic struggles, Colombia has achieved an important milestone: Fitch Ratings on Wednesday became the third credit rating agency this year to raise the South American nation's debt to investment grade.

Colombia's rating was upgraded by one notch to BBB-minus. Fitch cites prudent economic policies and increased resiliency to internal and external shocks.

Fitch also praised Colombia's capacity to navigate the world's weak economic climate.

Alberto Bernal, head of research for Bulltick Financial, believes the upgrade is the last step in Colombia's quest to restore its pre-1999 credit worthiness.

"Colombia is the only Latin America country that has never defaulted on an external debt commitment," Bernal said. "The return to investment grade implies that good policies pay-off in time. Good policies, meaning policies that respect the premises of low inflation and stable business cycles, are the only ones that can consistently reduce poverty in an emerging country. "

Colombia lost its investment grade in 1999 due an economic crisis prompted by the Asian economic fallout and an internal political crisis.

Colombia's gross domestic product grew 4.3% during 2010 and J.P. Morgan forecasts that it will grow 4.5% this year.

Both Standard & Poor's and Moody's Investors Service granted Colombia investment grade earlier this year.

-- Luis Carlos Vélez is anchor of "World Business Today" on CNN International