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BULLETIN: Celulosa Arauco y Constitucion S.A. (ARAUCO) Ratings Unaffected By Acquisitions Mar 05
Standard & Poors, March 2005
Abstract
NEW YORK (Standard & Poor's) March 14, 2005--Standard & Poor's Ratings Services said today that its ratings on Celulosa Arauco y Constituci-n S.A. (ARAUCO; BBB+/Stable/--) will not be affected by the recent announcement of the acquisition of assets in Brazil and Argentina for $300 million. The acquisition is relatively small for ARAUCO's operations and the required cash disbursement will be done with existing cash reserves, thus not affecting credit metrics. Additional revenues and EBITDA contribution of the acquired assets represent approximately 13% and 7.5%, respectively, of ARAUCO's consolidated revenues and EBITDA for fiscal 2004. Although we consider the diversification positively, the economic environment of the countries where the assets are located might incorporate certain cash-flow volatility. In addition, the decrease...
Companies mentioned in this report are: Celulosa Arauco y Constitucion S.A.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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