S&P puts Milpo on watch

S&P said it placed the BB+ corporate credit and issue-level ratings on Compania Minera Milpo SAA (Milpo) on CreditWatch with negative implications.

The rating action follows a similar action on Votorantim SA, which immediately affected the ratings on VM Holding SA, Milpo's direct parent.

Milpo is considered a core subsidiary of VM Holding and as a result, the ratings are the same as the group credit profile, S&P said.

Therefore, a negative rating action on VM Holding would result in a downgrade of Milpo, the agency said.

The agency said it believes that Milpo is integral to the group's strategy and that the group would provide timely and sufficient support under any foreseeable circumstances.

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