Standard & Poor's Ratings Services' rating on Celulosa ARAUCO y Constitución S.A. (ARAUCO) reflects the company's satisfactory business risk profile, mainly derived from its world-class cost position in forest management and the production of pulp, lumber, and panels, coupled with an intermediate financial profile. Nevertheless, ARAUCO has a narrow, mostly commodity-oriented product mix and consistently pays out about 40% of net income in dividends to its parent company, Empresas Copec S.A. (E-Copec; BBB+/Stable/--). ARAUCO's competitive profile benefits from its ownership of about 778,000 hectares of fast-growing pine plantations and, to a lesser degree, its 135,000 hectares of eucalyptus plantations mainly in Chile, but also in Argentina, Uruguay, and Brazil. Their strong fiber base combined with efficient pulp, lumber, and panel...
Companies mentioned in this report are:
- Celulosa Arauco y Constitucion S.A.
- Brazil (Federative Republic of)
- Chile (Republic of)
- Argentina (Republic of)
- Empresas Copec S.A.
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