S&P rates Inversiones notes BBB-

S&P said it assigned its BBB- issue-level rating to Inversiones CMPC SA’s proposed $500 million 10-year senior unsecured notes. Inversiones CMPC is a wholly owned financing vehicle subsidiary of Empresas CMPC SA, which is rated BBB-.

The rating on the notes is the same as the issuer credit rating on CMPC, based on its unconditional and irrevocable guarantee for the notes’ payment.

“We expect the company to use the issuance proceeds mostly to restore cash levels after the acquisition of Serrados e Pasta e Celulose Ltda (SEPAC) and the payment of the remainder of the 6 1/8% 2019 notes in the last quarter of 2019,” said S&P in a press release.

The BBB- rating on CMPC reflects its competitive cost structure, due to its access to highly productive forests in Chile and Brazil; integration of wood and energy production; and efficient logistics.

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