Empresas CMPC Downgraded to 'BBB-' Rating

S&P Global Ratings downgraded Empresas CMPC S.A. to 'BBB-' from 'BBB' on long-term ratings. The action reflects the company's weaker financial performance and higher leverage amid challenging market conditions in the pulp and paper sector.

CMPC's adjusted debt metrics have deteriorated due to lower EBITDA from softwood pulp price declines and elevated capital spending for growth projects. Despite these pressures, the stable outlook indicates balanced risks with potential recovery if market dynamics improve. The company maintains a solid business position as a leading Latin American pulp producer with diversified operations in tissue and packaging.

Key risks include ongoing volatility in global pulp demand, currency fluctuations in Chile, and execution risks on expansion investments. S&P expects CMPC to adjust leverage through cost discipline and asset sales if needed. This downgrade aligns with peers facing similar industry headwinds.