S&P rates Masisa, bonds BB-

Standard & Poor's said it assigned its BB- ratings to Masisa SA and to its $300 million 9½% bond issued on April 28.

The outlook is stable.

The ratings reflect the company's "fair" business risk profile and "aggressive" financial risk profile, as criteria define these terms.

The company's business risk profile incorporates its exposure to Argentina (unsolicited ratings, CCC+/negative/C) and Venezuela (B-/negative/B).

"Operations in these two countries contribute about 50% of Masisa's consolidated EBITDA. Mitigating factors include Masisa's solid position in the markets in which it operates and its vertically integrated business model, which allows the company to reduce its dependence on retailers and result in less volatile operating profitability than those of its peers operating in the wood panels business," S&P credit analyst Diego Ocampo said in a news release.

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