Moody’s assigns Baa3 to Inversiones notes

Moody’s Investors Service said it assigned a Baa3 rating to the proposed 10-year senior unsecured notes to be issued by Inversiones CMPC SA and fully guaranteed by Empresas CMPC SA. The outlook is positive.

Proceeds will be primarily used for liability management and other general corporate purposes, with no material impact on leverage.

“CMPC’s Baa3 ratings are supported by the company’s market position as one of the world’s largest and low-cost pulp producers with integrated paper operations throughout Latin America, its well-balanced revenue source, split into pulp (47%), biopackaging (38%) and softys (15%) in 3Q19, and an adequate liquidity profile. CMPC’s product mix diversification has historically resulted in margin stability, mitigating to some extent the effects of more volatile segments such as pulp. Accordingly, adjusted EBITDA margins stayed in the 20%-25% range since 2011, despite the high volatility in the pulp industry over the past years compared to other segments within the paper and forest products industry,” Moody’s said in a press release.

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