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 Standard & Poor's Ratings Services' rating on Alto Paraná S.A. reflects our belief that the company's 99.97% controlling shareholder, Celulosa Arauco y Constitucion (Arauco; BBB+/Stable/--), has sufficient economic incentives to support Alto Paraná, given its strategic importance as a key foreign subsidiary in Latin America, and thus incorporates some level of potential parental support. This is evidenced partly through the guarantee granted to Alto Paraná to support the upcoming debt issuance. As a result, our final rating on Alto Paraná is two notches above its...
Companies mentioned in this report are:
- Arauco Argentina S.A.
- Argentina (Republic of)
- Empresas Copec S.A.
- Celulosa Arauco y Constitucion S.A.
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Research Type: Full Analysis