Credit rating agency Standard & Poor’s has downgraded the ratings of Chilean iron ore and steel producer CAP Mineria from BB+ to BB, according to media reports.
CAP’s non-guaranteed senior bonds were downgraded from BB+ to B.
“CAP’s rating reflects the market niche position the company has as a premium pellets producer and a steelmaker in Chile,” the credit rating said.
According to S&P, the company’s debt are “at an average low cost,” which partially mitigates the risks generated by its small scale of operations and to the volatile exposition of the company to the iron and steel markets, which see an excess of supply.
However, CAP’s outlook was changed from negative to stable.