S&P: Arauco unaffected

Standard & Poor's said that the ratings on Celulosa Arauco y Constitución SA (BBB+/stable) will not be affected by the recent news that a Chilean investment fund will acquire certain forestry assets in Chile and sign some related contracts with Arauco.

The agency said that a new investment fund will be created in Chile to acquire from Forestal Bio-Bio SA about 40,000 hectares of high-quality pines in Chile and a small sawmill for about $340 million.

Simultaneously, Arauco will sign certain contracts including the following conditions: Arauco will manage the assets and will be the exclusive buyer of the wood production, Arauco will have the obligation to buy the lands at the end of year seven and Arauco will have the obligation to finance the acquisition should the investment fund fail to raise the money in the market, the agency added.

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