Empresa Nacional del Petroleo's Proposed Up To $680 Million Senior Unsecured Notes Rated 'BBB-'

SAO PAULO (S&P Global Ratings) Oct. 30, 2018--S&P Global Ratings today assigned its 'BBB-' debt rating to Chilean government-owned oil and gas company Empresa Nacional del Petroleo's (ENAP; BBB-/Stable/--) up to $680 million senior unsecured amortizing notes that mature in 2029. The company will use the bulk of the proceeds from the notes to cancel certain local and international bonds that mature in the next 12 months. The 'BBB-' issuer credit rating on ENAP continues to reflect our view that there's a very high likelihood that Chile (foreign currency: A+/Stable/A-1; local currency: AA-/Stable/A-1+) would provide timely and sufficient extraordinary support to the company in the event of financial distress. ENAP also enjoys a dominant position as Chile's only domestic oil

...SAO PAULO (S&P Global Ratings) Oct. 30, 2018--S&P Global Ratings today assigned its '###-' debt rating to Chilean government-owned oil and gas company Empresa Nacional del Petroleo's (ENAP; ###-/Stable/--) up to $680 million senior unsecured amortizing notes that mature in 2029. The company will use the bulk of the proceeds from the notes to cancel certain local and international bonds that mature in the next 12 months. The '###-' issuer credit rating on ENAP continues to reflect our view that there's a very high likelihood that Chile (foreign currency: A+/Stable/A-1; local currency: ##-/Stable/A-1+) would provide timely and sufficient extraordinary support to the company in the event of financial distress. ENAP also enjoys a dominant position as Chile's only domestic oil refiner. At the same time, ENAP's 'b' stand-alone credit profile incorporates the volatility and cyclicality in international refining margins, the company's lack of economies of scale and operational flexibility compared...

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