S&P affirms Alto Parana

Standard & Poor's said it affirmed the BB- corporate credit rating on Alto Paraná SA and removed it from CreditWatch with negative implications, where it was placed in February. The agency also said it affirmed the BBB rating on the company's $270 million notes due 2017, which is guaranteed by parent company Celulosa Arauco y Constitución SA.

The outlook is stable.

The ratings reflect a belief that the parent company has sufficient economic incentives to support Alto Paraná, given its strategic importance as a key foreign subsidiary in Latin America, S&P said.

The stand-alone ratings reflect the inherent operating risks in Argentina and its narrow, mostly commodity-oriented product mix, S&P said.

Competitive cost positions in forest management, pulp production, sawmill products and panels partially mitigate these factors, the agency said.

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