Fitch Celulosa Arauco view now stable

Fitch Ratings said it affirmed the BBB+ foreign and local currency credit ratings of Celulosa Arauco y Constitucion SA and revised its outlook to stable from positive.

In a related move, Fitch has revised the outlook of Empresas Copec SA (Copec) to stable from positive and affirmed its BBB+ foreign and local currency ratings, as Copec's largest asset is Arauco.

Fitch said the rating action is a result of the announcement by the company that it has voluntarily closed its Valdivia pulp mill and that it has accepted the resignation of the CEO of the company.

This announcement follows months of disputes between Arauco and some Regional Environmental Commissions (Comision Regional del Medioambiente - Corema) within Chile, primarily about the operations of the Valdivia pulp mill and its environmental impact.

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