S&P rates Inversiones notes BBB+

Standard & Poor's said it assigned a BBB+ rating to the $500 million senior unsecured 144A 10-year notes to be issued by Inversiones CMPC SA, which is wholly owned by Empresas CMPC SA (BBB+/negative).

Proceeds will be used to help fund CMPC's acquisition of the forestry and industrial assets of Brazilian Aracruz's Guaiba unit.

Ratings reflect the company's satisfactory business profile, including its strong business mix, solid competitive position in the Chilean and other Latin American tissue markets, competitive costs, and intermediate financial risk profile with a capacity for strong cash generation, the agency said.

These strengths help to moderate the effects of the cyclical forest products industry and the market volatility in the Latin American countries where the company operates, S&P noted.

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