The Chilean iron ore producer CAP S.A. has maintained leverage much higher than historical levels after recently missing EBITDA expectations due to operational issues at Los Colorados mine and lower-than-expected premiums for pellets. Moreover, its nominal debt almost doubled in three years as a result of higher capital expenditure, interest payments, and dividend distributions. On Nov. 28, 2025, S&P Global Ratings lowered its global scale issuer credit rating on CAP to 'BB' from 'BB+'. At the same time, we downgraded its 2036 senior bonds to 'BB' from 'BB+' and its 2031 senior notes to 'BB-' from 'BB'. The negative outlook reflects the possibility of another downgrade in the next 12-18 months if CAP is unable to improve and maintain leverage
