Bulletin: Negative Outlook Revision On Chilean Sovereign Doesn't Weaken ENAP's Credit Quality

This report does not constitute a rating action. BUENOS AIRES (S&P Global Ratings) Oct. 20, 2023--Yesterday, S&P Global Ratings revised its outlook on Chile to negative from stable and affirmed its foreign currency 'A/A-1' and local currency 'A+/A-1' ratings on the sovereign. The negative outlook captures the risks stemming from weakening political consensus on the key parameters of Chile's political and economic agenda. Difficulties in pushing forward material pieces of legislation might translate over time into weaker economic performance and prospects, as well as slower improvement in social conditions. Moreover, structurally weaker growth will continue to pressure Chile's fiscal and external profiles. The outlook change on the sovereign didn't trigger the same action on oil refiner and government-related entity Empresa

...October 20, 2023 This report does not constitute a rating action. BUENOS AIRES (S&P Global Ratings) Oct. 20, 2023--Yesterday, S&P Global Ratings revised its outlook on Chile to negative from stable and affirmed its foreign currency 'A/A-1' and local currency 'A+/A-1' ratings on the sovereign. The negative outlook captures the risks stemming from weakening political consensus on the key parameters of Chile's political and economic agenda. Difficulties in pushing forward material pieces of legislation might translate over time into weaker economic performance and prospects, as well as slower improvement in social conditions. Moreover, structurally weaker growth will continue to pressure Chile's fiscal and external profiles. The outlook change on the sovereign didn't trigger the same action on oil refiner and government-related entity Empresa Nacional del Petroleo (ENAP; ##+/Positive/--). This is because under our methodology, all things remaining equal, a potential one-notch downgrade of...

Bulletin