Moody’s: Baa3 to ENAP notes

Moody's Investors Service said it assigned a Baa3 rating to Empresa Nacional del Petroleo (ENAP)'s proposed $600 million senior unsecured notes due 2037.

Proceeds will be used primarily to repay debt and other general corporate purposes.

The outlook is stable.

The agency said the ratings are based on the company’s long operating history, high market share in Chile and increasing business diversity.

ENAP's ratings are constrained by a tight liquidity management, the inherent volatility of commodity prices and the resulting uncertain cash flow generation and profitability, as well as elevated debt leverage, which reached 8.2x as of the last 12 months ended June.

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