Recent deterioration in iron ore markets due to high freight rates and lower prices, along with lower produced volumes, have weighed on Chilean mining company CAP S.A.'s performance and EBITDA in 2026. We also expect CAP will face challenges to improve its margins and cash conversion in 2027 as its operations remain significantly exposed to iron ore cycles, which will keep leverage higher than anticipated and pressure its financial covenants. On Oct. 29, 2026, 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'B+'from'BB-'. We also placed all ratings on CreditWatch
