S&P rates Inversiones notes BBB+

Standard & Poor's said it assigned a BBB+ senior unsecured rating to Inversiones CMPC SA's proposed seven-year notes for up to $500 million.

The agency also said it affirmed its ratings and the ratings of its holding company, Empresas CMPC SA.

The outlook is stable.

The agency said it views the proposed issuance as the company's action to take advantage of current favorable debt market conditions, to further strengthen its liquidity position and finance in advance future principal maturities and capital expenditures.

The affirmation incorporates an expectation that the company will maintain its leverage target ratio of net-debt-to EBITDA below 2.5x, which is a key credit consideration, S&P said.

The ratings continue to reflect the company's satisfactory business profile, with support from its strong business mix, solid competitive position in the Chilean and other Latin American tissue markets and competitive costs, the agency said.

These strengths help moderate the cyclical forest-products industry, the market volatility in the Latin American countries and a relatively aggressive expansion strategy, S&P said.

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