S&P assigns Alto Paraná BB

Standard & Poor's said it assigned its BB corporate credit rating to Alto Paraná SA.

The outlook is stable.

At the same time, the agency said it assigned its BBB+ rating to the company's senior unsecured proposed 10-year, $270 million bullet notes.

These notes benefit from an unconditional full guarantee of payment provided by its 99.97% controlling shareholder, Celulosa Arauco y Constitución SA (BBB+/stable), the agency said.

The rating on the $270 million notes is aligned with that of Arauco, considering the unconditional full guarantee of payment provided for the notes, S&P said, adding that proceeds from the issuance will be used to refinance existing indebtedness and to finance capital expenditures.

The agency noted that the rating on Alto Paraná reflects its belief that Arauco 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.

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