Moody's cuts ENAP

Moody's Investors Service said it downgraded the foreign currency ratings of Empresa Nacional del Petroleo to Baa2 from Baa1.

The outlook is negative.

Moody's said the downgrade reflects Empresa's elevated financial leverage and highly volatile earnings.

The company's recent financial performance has been below expectations, with the generation of negative EBITDA over the last two quarters and rising debt levels.

While Moody's said it expects Empresa to post positive EBITDA for the full year 2012, financial leverage is expected to remain high relative to peers and given its exposure to the import-dependent Chilean refining sector.

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