Moody’s applies Baa1 to SQM notes

Moody's Investors Service said it assigned a Baa1 rating to Sociedad Quimica y Minera de Chile, SA's (SQM) proposed $250 million senior unsecured notes.

The outlook is stable.

Proceeds will be used to repay existing debt.

Moody’s said the Baa1 rating is supported by SQM's modest leverage, favorable cost metrics (e.g., return on assets and EBITDA margin) and strong interest coverage for the rating category. The company enjoys access to rich natural resources in northern Chile, which gives it cost advantages. SQM benefits from a broad universe of industries and customers for its products, which are sold globally into diverse applications such as plant nutrition, X-ray contrast media, pharmaceuticals, LCD polarizing film, batteries and alternative energy, the agency said.

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