Moody’s assigns A3 to Codelco notes

Moody’s Investors Service said it assigned an A3 rating to Corporacion Nacional del Cobre de Chile’s (Codelco) proposed senior unsecured notes due 2030. The outlook is stable.

Proceeds together with the reopening of the 2050 senior unsecured notes issued in September, will be used primarily for liability management. Accordingly, Codelco has about $3 billion in maturities due in 2020, 2021, 2022. As a result, assuming $2 billion in net proceeds, the transaction will not have a material effect on Codelco’s leverage and will help reduce funding costs and interest expenses.

The A3 rating reflects the company’s status as a government-related issuer. The government’s high level of support provides Codelco with a three-notch upgrade above its baseline credit assessment, the agency said.

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