S&P rates Codelco bonds A

Standard & Poor's said it assigned an A rating to Corporacion Nacional del Cobre de Chile's (Codelco) planned issuance of up to $1 billion of senior unsecured 10-year bullet bonds.

The agency also said it affirmed the A rating on its foreign-currency corporate credit rating on the company. The stand-alone credit profile is BBB-.

The outlook is stable.

The ratings reflect an opinion that the Republic of Chile is likely to provide timely and sufficient extraordinary support to Codelco in financial distress, S&P said.

The company has a strong market position as the world's largest integrated copper mining company and second-largest producer of molybdenum, with ample high-grade copper ore reserves, a globally competitive cost structure and integrated operations including copper refining and smelting, S&P said.

Offsetting these strengths are the industry's inherent cyclicality, the company's lack of geographic diversification and aggressive financial policy, the agency said.

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