S&P upgrades CAP

S&P said it raised the global-scale rating on CAP SA to BB+ from BB.

The agency also said it raised the rating on its senior unsecured notes to BB+ from BB.

The ratings were removed from CreditWatch, where they were placed with positive implications in January.

The outlook is stable.

The ratings reflect the company's strategy and ability to change product mix to improve efficiency of its asset-based usage, S&P said, while higher average iron ore prices and fairly low capital expenditure needs will continue to drive strong cash-flow generation.

This and the company's fairly low debt support a view of fast improving financial metrics, S&P said.

Nonetheless, the company remains subject to financial metric volatility due to its exposure to iron ore prices, small scale of operations and Chile's steel industry, which faces significant competition from imports, the agency said.

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