Summary: CAP S.A. Dec 10
- ID: 1872459
- December 2010
- Standard & Poors
Standard & Poor's Ratings Services' ratings on Chile-based iron ore and steel producer CAP S.A. reflect the company's strong positioning as the leader in the Chilean steel market, adequate leverage, and enhanced liquidity position after a $401 million capital infusion received from Mitsubishi Corp. (MC; A+/Stable/A-1) in April 2010 in connection with the merger of its subsidiaries Compañía Minera Huasco S.A. (CMH) and Compañía Minera del Pacifico S.A. (CMP), which also increased MC's share in CAP's iron ore business. These factors help CAP offset its inherently volatile cash flow from operations, which varies according to iron ore and steel prices; and higher costs for iron ore production than those of global peers because of CAP's relatively small-scale operations and low-grade...
Companies mentioned in this report are:
- CAP S.A.
- Mitsubishi Corp.
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