S&P downgrades CAP

Standard & Poor’s said it lowered its corporate credit ratings on CAP SA to BB from BB+ and lowered the issue level rating on the company’s senior unsecured bonds to BB from BB+.

The outlook is now stable.

S&P said the ratings on CAP reflect the company’s niche market position as a premium pellet producer and steelmaker in Chile. Its debts are, on average, low cost, but this only partially mitigates the risks spawning from its small scale of operations and exposure to the volatile iron ore and steel markets, which have a significant global oversupply.

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