S&P affirms CMPC

Standard & Poor's said it affirmed the BBB+ ratings on Empresas CMPC SA and on its wholly owned financing vehicle Inversiones CMPC SA.

The outlook is stable.

The affirmation is based on the company's financial performance that's in line with expectations, according to the agency.

Ratings reflect CMPC's satisfactory business profile, benefiting from a strong business mix, solid competitive position in the Chilean and other South American tissue markets, and its competitive costs, the agency said.

Ratings also incorporate the company's intermediate financial risk profile, characterized by strong profitability and cash-flow generation ability and a moderate financial policy that reflects the company's commitment to maintain certain target financial ratios and minimum liquidity, the agency noted.

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

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