Fitch Mulls Codelco Upgrade

Fitch has revised the outlook to positive from stable on Codelco’s long-term foreign and local currency issuer default (IDR) ratings, following a similar recent move on the sovereign. Codelco has a long-term foreign currency IDR of A. The ratings reflect its solid financial and export-oriented operating profile, as well as its position as the world’s largest copper and molybdenum producer, says Fitch. Strengths are tempered by vulnerability to fluctuations in international commodity prices, rising production costs, large capital-investment requirements, increasing debt levels and exposure to political interference.