Moody’s lifts Inversiones CMPC view to positive

Moody's Investors Service said it affirmed the Baa3 ratings assigned to the senior unsecured notes issued by Inversiones CMPC SA and fully guaranteed by Empresas CMPC SA.

The outlook was changed to positive from stable.

The positive outlook reflects the company’s improvements in operational and financial performance, which have strengthened its business profile and growth opportunities in its main segments, Moody’s said.

The company has a conservative growth strategy focusing on expanding its tissue segment in large markets where the company does not have a strong presence – namely Brazil and Mexico, the agency said.

The ratings remain supported by the company's market position as one of the world's largest and low cost pulp producers with integrated paper and tissue operations throughout Latin America, Moody’s said.

The ratings also consider its well-balanced revenue source and product mix diversification, the agency said.

The positive outlook reflects estimates that CMPC will continue to present steady credit metrics in the next 12 to 18 months, despite the expected volatility in hardwood and softwood pulp prices in the period, Moody’s said.

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