Research Update: Chilean Refinery ENAP Outlook Revised To Positive From Stable On Improved Credit Metrics, 'BB+' Ratings Affirmed

In 2022, Empresa Nacional del Petroleo (ENAP) posted the highest EBITDA and lowest leverage metrics of the last 10 years. More importantly, we expect its main credit metrics to remain stronger in the next 12-24 months than those of the last few years, given still relatively high oil prices. Although we're currently not changing our financial risk profile assessment on the company, we believe ENAP is better positioned for an upgrade in the next 12 months. On Feb. 9, 2023, S&P Global Ratings revised the outlook to positive from stable and affirmed the 'BB+' ratings on ENAP. Our assessment of the very high likelihood of support from the Chilean government, the company's sole shareholder, remains unchanged. We believe this assessment

...- In 2022, Empresa Nacional del Petroleo (ENAP) posted the highest EBITDA and lowest leverage metrics of the last 10 years. More importantly, we expect its main credit metrics to remain stronger in the next 12-24 months than those of the last few years, given still relatively high oil prices. Although we're currently not changing our financial risk profile assessment on the company, we believe ENAP is better positioned for an upgrade in the next 12 months. - On Feb. 9, 2023, S&P Global Ratings revised the outlook to positive from stable and affirmed the '##+' ratings on ENAP. Our assessment of the very high likelihood of support from the Chilean government, the company's sole shareholder, remains unchanged. We believe this assessment properly captures our expectation of support in a stress scenario, and it's in line with those of other government-related entities (GREs) rated in the country and region. - The positive outlook reflects our expectation that ENAP's main credit metrics will...

Research Update