...Full Sovereign Ownership: Corporaci=n Nacional del Cobre de Chile's (Codelco) `A+' rating reflects 100% state ownership and its strategic importance to Chile, which links the ratings to the sovereign. Ratings linkage is reinforced by 2014's capitalization law consisting of USD3 billion in capital contributions and USD1 billion in retained earnings. The state has up to the last day in 2018 to inject these funds. In 2015, the government injected USD600 million and allowed the company to retain USD225 million of net profits. Increasing Credit Profile Pressure: Codelco exhibits a weakened stand-alone credit profile. This is a result of higher debt levels used to finance a large capex program coupled with the negative effects of lower copper prices, resulting in weaker cash flow generation. During the LTM ended June 30, 2016, Codelco's total debt/adjusted EBITDA, adjusted for dividends received from associates, was 4.8x compared with 3.4x in the LTM ended June 2015. Elevated Leverage to Remain:...
