S&P affirms ENAP

Standard & Poor's said it affirmed the A long-term foreign-currency corporate credit rating on Empresa Nacional del Petroleo.

The outlook is stable.

Ratings reflect the republic of Chile's 100% ownership of the company, ENAP's increasing importance as a public-policy entity and its strong position in its core business as the only Chilean domestic oil refiner, the agency said.

These factors are partly offset by the volatility and cyclicality of international refining margins, the company's relatively weak profitability and cash-flow generation, and the challenges of expanding its business with limited cash flow, S&P said.

The company's total adjusted debt-to-EBITDA ratio was 3.3 times for the 12 months ended Dec. 31, compared with 2.8 times in 2006.

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