Fitch: Molymet unchanged

Fitch Ratings said Molibdenos y Metales SA (Molymet)'s long-term issuer default rating of BBB and national long-term rating of A+(cl) are expected to remain unchanged following its upcoming capital increase due for completion on Nov. 10.

The issue of the new shares on the Chilean stock exchange represents a 10% increase in the company's stock, Fitch said, and is expected to generate more than $200 million.

The proceeds are expected to be applied to the company's investment program to enhance its geographical presence, especially in Asia, Fitch said.

The funding of these growth plans with a combination of equity and debt is consistent with expectations, the agency said, and has been factored into the ratings.

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