Fitch rates CMPC notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to the proposed note issuance by Inversiones CMPC SA and unconditionally guaranteed by Empresas CMPC SA.

Proceeds, which are expected to total up to $500 million, will be used for debt repayment and general corporate purposes.

Empresas CMPC unconditionally guarantees all of Inversiones CMPC’s debt. The ratings have been linked to those of Empresas CMPC through Fitch's Parent and Subsidiary Rating Linkage Criteria.

Fitch said the credit ratings reflect the company's strong business positions within Latin America. Empresas CMPC is the leading tissue producer in Chile, Peru, Argentina and Uruguay and has a growing presence in markets such as Brazil and Mexico.

The company's strong market position in tissue, which accounted for 20% of its EBITDA during the last 12 months ended June 30, is the result of the strong brand equity of its products, its low production cost structure and strong distribution network, the agency said.

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