Fitch rates Codelco bonds A+

Fitch Ratings said it assigned an expected A+ rating to Corporacion Nacional del Cobre de Chile's (Codelco) senior unsecured bonds due 2027 and 2047.

The proceeds will be used to primarily refinance upcoming bond maturities, Fitch said.

Codelco initiated a tender offer for up to $2.75 billion to purchase their notes due in 2019, 2020 and 2021, the agency said.

If these bondholders do not tender for the full value of these securities, the extra proceeds from the issuance will be used to repurchase notes due on 2022, 2023 and 2025, Fitch said.

The tender offer will allow Codelco to improve its debt maturity profile and strengthen its liquidity, the agency said.

New bond issuances will not increase net leverage ratio, Fitch added.

Codelco's A+ rating reflects its 100% ownership by the state of Chile and its strategic importance to the country, the agency added.

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