Research Update: CAP S.A. Outlook Revised To Stable From Negative On Skyrocketing Iron Ore Prices, 'BB+' Ratings Affirmed

The record high iron ore prices and recovered volumes of iron ore dispatches after fixing the Guacolda 2 Port improved Chilean-based pellets and steel producer CAP S.A.'s credit metrics considerably, and we expect net debt to EBITDA to remain comfortably below 1.5x in 2021. On March 1, 2021, S&P Global Ratings revised its outlook on CAP to stable from negative and affirmed its global scale 'BB+' issuer credit rating on the company and issue ratings on CAP's senior unsecured notes. The stable outlook reflects higher cash generation and stronger credit metrics in a favorable scenario for commodity prices. We expect the company to benefit from positive momentum to extend maturities and improve overall capital structure. The stable outlook reflects the

...- The record high iron ore prices and recovered volumes of iron ore dispatches after fixing the Guacolda 2 Port improved Chilean-based pellets and steel producer CAP S.A.'s credit metrics considerably, and we expect net debt to EBITDA to remain comfortably below 1.5x in 2021. - On March 1, 2021, S&P Global Ratings revised its outlook on CAP to stable from negative and affirmed its global scale '##+' issuer credit rating on the company and issue ratings on CAP's senior unsecured notes. - The stable outlook reflects higher cash generation and stronger credit metrics in a favorable scenario for commodity prices. We expect the company to benefit from positive momentum to extend maturities and improve overall capital structure....

Research Update