Fitch rates ENAP notes A

Fitch Ratings said it expects to assign a rating of A to Empresa Nacional del Petroleo's (ENAP) proposed senior unsecured debt issuance of $680 million due 2029.

ENAP intends to use almost all of the proceeds to refinance existing debt of about $670 million, Fitch said.

The remaining proceeds will be used for general corporate purposes.

The notes will rank pari passu in priority of payment with all of ENAP's other senior unsecured debt, the agency said.

The notes would be rated the same as all of ENAP's senior unsecured obligations, Fitch added.

Same as the company's long-term financing, the only covenant for this debt issuance is a change of control clause, the agency noted.

ENAP's long-term foreign-currency issuer default rating, equalized with the Chilean sovereign rating, reflects the company's 100% ownership by the Chilean government and the sovereign's incentive to provide financial support to the company, given its strategic importance for the country, Fitch said.

The company is responsible for assuring a significant portion of Chile's energy supply, the agency said, and owns 100% of the country's refining capacity.

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