Moody’s gives Inversiones CMPC notes Baa3

Moody's Investors Service said it assigned a Baa3 foreign currency rating to the proposed senior unsecured notes to be issued by Inversiones CMPC SA, and fully guaranteed by Empresas CMPC SA.

The outlook is stable.

Proceeds will be used to finance capital expenditures in eligible green projects, including sustainable forestry and water management, energy efficiency, pollution prevention and control. CMPC's sustainability committee will oversee the process of selection of projects and the effective allocation of funds.

Moody’s said the Baa3 ratings are supported by the company's market position as one of the world's largest and low-cost pulp producers with integrated paper operations throughout Latin America, and the well-balanced revenue source, split into pulp (47%), tissue (37%) and paper (16%) in the last 12 months ended December 2016. CMPC's product mix diversification has historically resulted in margin stability, protecting profitability from volatility in segments such as pulp, the agency added.

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