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Alto Paran? S.A. May 10
Standard & Poors, May 2010
Abstract
Potential parent support from its parent Low-cost producer Extended debt maturity profile Relatively narrow product mix, with exposure to cyclical commodity risks Modest scale of operations compared with global peers Tax contingencies Standard & Poor's Ratings Services' ratings on Alto Paran- S.A. reflect our belief that the company's 99.97% controlling shareholder, Celulosa Arauco y Constituci-n S.A. (ARAUCO), has sufficient economic incentives to support the firm, given its strategic importance as a key foreign subsidiary in Latin America. The stand-alone ratings, in turn, reflect the inherent operating risks in Argentina; its narrow, mostly commodity-oriented product mix; and its modest scale compared with rated peers; Competitive cost positions in forest management, pulp production, sawmill products, and panels partially mitigate these factors. Alto...
Companies mentioned in this report are: Alto Parana S.A.,Argentina (Republic of) (Unsolicited Ratings),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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