Fitch lifts Codelco view to positive

Fitch Ratings said it revised the outlook on Corporacion Nacional del Cobre de Chile's (Codelco) A foreign-currency and A+ local-currency long-term issuer default ratings to positive from stable following Fitch's revision of the outlook of the Republic of Chile's long-term foreign- and local-currency issuer default ratings to positive from stable.

The agency said Codelco's ratings are highly linked with the credit profile of Chile and incorporate the company's state ownership, favorable government support and strategic importance to the country. Codelco's ratings also reflect its solid financial and export-oriented operating profile, as well as its position as the world's largest copper and molybdenum producer.

These strengths are tempered by vulnerability to fluctuations in international commodity prices, rising production costs, large capital-investment requirements, increasing debt levels and exposure to political interference, Fitch said.

The total debt-to-EBITDA ratio was 0.5x through March.

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