Bulletin: CAP S.A.'s Suspension Of Non-Core Steel Operation Won't Weaken Credit Profile

This report does not constitute a rating action. BUENOS AIRES (S&P Global Ratings) March 25, 2024--CAP S.A. (BB+/Stable/--) announced the suspension of its steel operations in Huachipato Chile after concluding that the Anti-Distortion Commission's (CNDP's) antidumping measures against Chinese steel products as insufficient. The company expected an import duty surcharge of 25%, compared with CNDP's 15%. Although there could be conversations with the government to avoid the suspension, the company plans the definite suspension of the steel operations within the next three months. As a result, although this does not have an immediate impact on the rating, S&P Global Ratings believes it will strengthen slightly the company's financial profile, given that its steel operations have been underperforming for several years,

...March 25, 2024 This report does not constitute a rating action. BUENOS AIRES (S&P Global Ratings) March 25, 2024--CAP S.A. (##+/Stable/--) announced the suspension of its steel operations in Huachipato Chile after concluding that the Anti-Distortion Commission's (CNDP's) antidumping measures against Chinese steel products as insufficient. The company expected an import duty surcharge of 25%, compared with CNDP's 15%. Although there could be conversations with the government to avoid the suspension, the company plans the definite suspension of the steel operations within the next three months. As a result, although this does not have an immediate impact on the rating, S&P Global Ratings believes it will strengthen slightly the company's financial profile, given that its steel operations have been underperforming for several years, reporting EBITDA losses of $156 million in 2023 and $91 million in 2022. In addition, CAP will continue to operate some non-steel business such as the development...

Bulletin