S&P raises Empresas CMPC

S&P said it raised its ratings for Empresas CMPC SA and its senior unsecured notes to BBB from BBB-.

“CMPC's sound operational performance amid favorable pulp prices helped the company reduce leverage and strengthen its overall credit metrics in 2021 and 2022. Debt to EBITDA fell to 2.1x in 2021 and 2022 from 3x-4x during the previous five years (with the exception of 1.8x in 2018). In our view, the company will be able to maintain its improved financial profile with debt to EBITDA between 2x and 2.5x, even factoring in weaker global economic conditions and lower pulp prices as new capacity enters the market,” the agency said in a statement.

S&P said it forecasts Empresas’ EBITDA to decline to $1.7 billion from 2022’s $2.1 billion, but still 70%-80% above 2020.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.