S&P: Chivor unaffected

Standard & Poor's said the $170 million bullet 10-year senior secured notes issue of Chivor SA ESP (B/positive/--) does not affect the B rating on the company.

S&P said Chivor's total debt remains unchanged because the higher U.S. dollar-denominated debt is offset by the lower Colombian peso-denominated debt.

S&P said it considers that the higher foreign exchange risk related to the higher U.S. dollar-denominated debt is offset by better than projected cash flow mainly due to a lower than projected interest rate for the bond, a lower interest rate for U.S. dollar-denominated debt if compared with local currency debt and different amortization schedule of the bond compared with the Colombian peso-denominated bank loan.

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