S&P rates Empresa de los Ferrocarriles del Estado notes A

S&P said it assigned its A issue-level rating on Empresa de los Ferrocarriles del Estado's (EFE; A/stable/--) proposed senior notes for up to $500 million and for up to 40 years.

The company will use the proceeds to finance projects and for general corporate purposes.

“The A credit rating on the company mainly incorporates our view of the social, economic, and political importance of its public service mandate. This in turn prompts us to believe that there's an almost certain likelihood that EFE will benefit from timely and sufficient extraordinary support from its owner, the Chilean government (foreign currency: A/stable/A-1; local currency: A+/stable/A-1), in the hypothetical event of financial distress,” S&P said in a news release.

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