S&P: Empresas Copec unaffected

Standard & Poor's said that its ratings on Empresas Copec SA (BBB+/stable/--) are not affected by the decision of its wholly owned forest products subsidiary, Celulosa Arauco y Constitución SA (BBB+/stable/--) to temporarily shut down its pulp mill in the city of Valdivia after continuing controversies related to environmental issues.

S&P said it believes that a temporary shut-down of the plant would not significantly affect Arauco's financial position.

In addition, although a more adverse scenario for Arauco may hurt consolidated performance - Arauco represents more than 80% consolidated EBITDA - S&P said it believes Empresas Copec's nonconsolidated debt repayment capacity would not be significantly impaired.

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