S&P rates ENAP notes BBB-

Standard & Poor's said it assigned a BBB- rating to Empresa Nacional del Petroleo's (ENAP) $500 million of 10-year fixed-rate notes. The notes have final maturity in 2020.

The proceeds are expected to cancel short-term debt, the agency added.

The ratings reflect a high likelihood that the Republic of Chile would provide timely and sufficient extraordinary support in a distress scenario, S&P said.

The agency said it assesses the company's stand-alone credit profile to be in the B category, primarily as a result of its persistently weak capital structure and low free cash flow.

The ratings also incorporate the company's strong position in its core business as Chile's only domestic oil refiner, as well as the volatility and cyclicality in international refining margins, S&P said.

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