S&P shifts Empresas CMPC view to positive

S&P said it revised the outlook on Empresas CMPC SA to positive from stable and affirmed the BBB- ratings on the company and its senior unsecured notes.

“Following a prolonged downturn on pulp prices during 2019 and 2020, we believe 2021 will register a strong recovery. We expect CMPC's averaged realized prices to rise to about $660-$680 per ton in 2021, compared to $500 per ton in 2020, which––combined with good operational performance in the company's tissue and packaging segments–will result in a considerable drop in leverage,” the agency said in a press release.

The outlook reflects the one-in-three chance the agency will upgrade CMPC’s ratings in the next 12 to 24 months if the company's operational performance remains solid and its financial discipline continues cushioning price volatility, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.