Fitch: Chilean corporates to negative

Fitch Ratings said it revised the outlooks for the following Chilean corporates to negative from stable: Corporacion Nacional del Cobre de Chile; Empresa Nacional del Petroleo; and Empresa de Transporte de Pasajeros Metro SA.

These companies' credit ratings are driven by the strong linkage to the sovereign given the sovereign's ownership position, and their strategic importance to the government.

The outlook revision follows Fitch's revision of Chile's outlook to negative from stable on Dec. 13. The revision reflects prolonged economic weakness, which is contributing to a relatively rapid deterioration in the sovereign balance sheet. In the agency’s view, the policy response has helped buffer the economy and preserve credibility, but it has not prevented a substantial rise in the public debt burden from the low levels that underpinned the upgrade to A+ in 2011.

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