Empresa Nacional del Petroleo's New Senior Unsecured Notes Up To $600 Million Rated 'BB+'

SAO PAULO (S&P Global Ratings) Sept. 7, 2021--S&P Global Ratings today assigned its 'BB+' issue-level rating to Empresa Nacional del Petroleo's (ENAP's; BB+/Stable/--) proposed 10-year senior unsecured notes of up to $600 million. The company will use the proceeds to repay the $410 million international bond due December 2021 and for general corporate purposes, including the repayment of short-term debt maturities under its bilateral facilities. The ratings on ENAP continue to incorporate a highly leveraged financial profile, which we consider sustainable due to the company's ownership by Chile, which we rate at investment grade, and our assessment of a very high likelihood of extraordinary support from the sovereign in case of financial distress. Our ratings also incorporate our view of

...September 7, 2021 SAO PAULO (S&P Global Ratings) Sept. 7, 2021--S&P Global Ratings today assigned its '##+' issue-level rating to Empresa Nacional del Petroleo's (ENAP's; ##+/Stable/--) proposed 10-year senior unsecured notes of up to $600 million. The company will use the proceeds to repay the $410 million international bond due December 2021 and for general corporate purposes, including the repayment of short-term debt maturities under its bilateral facilities. The ratings on ENAP continue to incorporate a highly leveraged financial profile, which we consider sustainable due to the company's ownership by Chile, which we rate at investment grade, and our assessment of a very high likelihood of extraordinary support from the sovereign in case of financial distress. Our ratings also incorporate our view of ENAP's liquidity as less than adequate, because its cash uses will exceed its sources in the next 12 months. Our liquidity assessment captures the company's well-established relationship...

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