Weak global iron ore prices, due to sluggish steel consumption, and high competition from imported steel are likely to reduce CAP's EBITDA generation and weaken its financial metrics over the coming quarters. We have placed our 'BB+' ratings on Chile-based steel and iron ore producer on CreditWatch with negative implications. The negative CreditWatch listing reflects our view of a downgrade potential in the next 60-90 days if current ore prices persist and the company's credit metrics further weaken, absent mitigating factors. On Dec. 22, 2015, Standard&Poor's Ratings Services has placed its 'BB+' corporate and issue-level ratings on CAP S.A. on CreditWatch with negative implications. Ratings on CAP continue to reflect its small scale of operations and historically low
