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Alto Paran? S.A. Jun 09
Standard & Poors, June 2009
Abstract
Low-cost producer Strategic fit into strong parent's strategy, resulting in potential support Relatively narrow product mix, with exposure to cyclical commodity risks Modest scale of operations compared with that of global peers Aggressive dividend policy The ratings on Argentina-based forest company Alto Paran- S.A. (Alto Paran-) reflect our belief that the company's 99.97% controlling shareholder, Chile-based Celulosa Arauco y Constituci-n S.A. (ARAUCO; BBB+/Negative/--), has sufficient economic incentives to support the firm, given its strategic importance as a key foreign subsidiary in Latin America. The ratings therefore incorporate some level of potential parental support, based partially on ARAUCO's guarantee of Alto Paran-'s $270 million in notes. As a result, we have also aligned with the rating on ARAUCO the 'BBB+' rating...
Companies mentioned in this report are: Alto Parana S.A.,Empresas Copec S.A.,Celulosa Arauco y Constitucion S.A.,Compania de Petroleos de Chile COPEC S.A.
Action: Review
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: Full Analysis
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