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BULLETIN: ARAUCO's 2001 Performance Affected by an Unfavorable Pricing Environment Apr 02
Standard & Poors, April 2002
Abstract
Standard & Poor's said today that cyclical unfavorable pulp pricing will have no effect on Celulosa Arauco y Constituci-n S.A.- ARAUCO's (BBB+/Stable/--) ratings and outlook. In line with Standard & Poor's expectations, ARAUCO's 2001 performance has translated into a weakening of its operating margins and cash flows in 2001, and has resulted in declines in the EBITDA margin to 36.8% from 49.4% and in gross interest coverages to 4.0x from 6.5x in fiscal 2000 (which are considered relatively low for this rating category). However, given its competitive positioning, the company's over-the-cycle performance is still adequate and profitability measures are still well above the average for the industry. A persistent negative environment, along with the increased capital expenditures related to the...
Companies mentioned in this report are: Celulosa Arauco y Constitucion S.A.
Action: S&P Event
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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