Fitch affirms Empresas, Inversiones

Fitch Ratings said it affirmed the long-term foreign and local currency issuer default ratings for Empresas CMPC SA at BBB and its long-term national scale rating at AA-(cl).

The agency also affirmed the long-term foreign currency issuer default rating for Inversiones CMPC at BBB.

The outlook is stable.

Fitch said that CMPC's credit ratings reflect its strong business positions, as the fourth largest market pulp producer globally and the second largest tissue producer in Latin America.

In addition, CMPC is able to generate strong cash flow during cyclical pricing downswings due to its production cost in the lowest quartile, the agency added.

However, Fitch said it considers the risks associated with the intrinsic high volatility of the pulp and paper industry in its analysis.

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