S&P lowers Celulosa Arauco

Standard & Poor's said it lowered Celulosa Arauco y Constitucion SA's rating to BBB- from BBB.

The outlook is now stable.

The downgrade reflects that the company's credit profile has deteriorated due to high debt and aggressive investments amid softer-than-expected results, S&P said.

The company is expected to report higher debt than originally anticipated, absent high-impact offsetting measures, the agency said.

Although weaker than before, S&P said it still considers the company's financial risk profile to be intermediate due to expectations of improving leverage profile by 2014 through a significant debt reduction paid down with internal cash flows.

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