SANTIAGO, March 11 (Reuters) - Moody’s Investors Service on Friday downgraded the long-term senior unsecured rating for Chile’s state-owned copper miner, Codelco, to A3 from A1, saying the outlook remains negative.
Codelco’s baseline credit assessment (BCA) was also lowered to ba2 from baa1.
Moody’s said that Codelco’s credit profile and operations remain solid.
The downgrade is due to “the impact of the volatility and downward pressure of copper prices in Codelco’s credit metrics, lower earnings expectations and the large expansion phase with substantial capital expenditures needed to increase production and reverse the declining trend in ore grades,” said Moody‘s.
Codelco was not immediately available for comment. (Reporting by Anthony Esposito; Editing by Matthew Lewis)