S&P gives Iansa notes BB

Standard & Poor's said it assigned its BB local and foreign currency corporate credit rating to Empresas Iansa SA (Iansa).

The outlook is stable.

At the same time, S&P said it assigned its BB senior unsecured debt rating to IANSA Overseas Ltd.'s upcoming $100 million 144A notes with bullet maturity in 2012, reflecting the corporate credit rating of the guarantor, Iansa.

The ratings reflect the challenges the company will face to adjust raw material costs and improve profitability to compensate for the upcoming decline in price protection levels in the sugar market in Chile starting in 2008, the agency said.

These factors and the relative client sales concentration are mitigated by the company's good competitive position as the only sugar producer in the protected Chilean market and the sound ties with Chilean farmers, S&P noted.

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