Moody's rates Codelco notes A3

Moody's Investors Service said it assigned an A3 rating to Corporacion Nacional del Cobre de Chile's (Codelco) proposed senior unsecured notes due 2049.

The proceeds will be used for liability management and general corporate purposes, Moody's said.

The outlook is stable.

The proceeds from the proposed issuance will be used primarily to finance tender offers for several notes issues, Moody's said.

As a result, the transaction will not have a material effect on Codelco's leverage and will result in a more comfortable maturity profile, the agency said.

The ratings reflect Codelco's status as a government related issuer with a baseline credit assessment of Baa3 and assumptions of high support from the government of Chile, Moody's said.

The ratings also consider the company's position as the world's largest copper producer and the second largest molybdenum producer, the agency said.

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