Fitch snips Codelco

Fitch Ratings said it downgraded Corporacion Nacional del Cobre de Chile's (Codelco) long-term foreign- and local-currency issuer default rating and senior unsecured notes to BBB+ from A-. The agency also lowered the long-term national scale rating to AA+(cl) from AAA(cl).

“The downgrade of Codelco's ratings is a result of lowering its stand-alone credit profile (SCP) to bb from bbb- reflecting the deterioration of Codelco's credit profile above previous Fitch's expectations, evidenced by higher leverage averaging 4.5x-4.8x and weaker EBITDA to interest expense ratios of 4.5x-5.5x, in the next three years. Both of which are commensurate with the b category,” Fitch said in a statement.

The outlook is stable.

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