Moody’s lifts Codelco BCA

Moody's Investors Service said it affirmed Corporacion Nacional del Cobre de Chile's (Codelco) A3 senior unsecured ratings and raised its baseline credit assessment to baa3 from ba1.

The outlook remains stable.

“The BCA incorporates the ongoing large investment plan to increase production and improve falling ore grades, requiring the issuance of incremental debt while generating sustained negative free cash flow,” the agency said in a news release.

“We estimate annual capital expenditures around $4 billion over the 2018-2020 period, mostly directed to key structural projects, namely Chuquicamata undergournd, El Teniente new mine level and Andina plant relocation.”

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