Chilean Firms Detail Quake Impact

Chilean companies are filing regulatory reports indicating the extent of the damage they suffered in the February 27 earthquake. Steelmaker CAP says it had to stop operations due to damages at its port and manufacturing areas. It estimates it will take at least 3 months to bring operations back to normal. Elsewhere, wine producer Concha y Toro says it suffered serious damage, as the quake hit “the heart of wine-making activity” in Chile. It is assessing the impact on operations. Fertilizer and chemicals producer Soquimich meanwhile says that facilities in Penco were affected by a tsunami produced by the quake, but that operations should resume in 15 days. It is evaluating damages to the San Antonio port. The company’s Puerto Montt operations are operating normally, it says, adding that it has insurance to cover any damages to facilities and products. Paper and pulp company Celulosa Arauco says it has paralyzed operations while it investigates the extent of the damages. It states that it has insurance to cover any damages as well as losses arising from halting operations. Elsewhere, CMPC declared force majeure for an initial period of 30 days in order to mitigate damage to customers and suppliers, says Dow Jones Newswires, citing a letter from CMPC CEO Sergio Colvin. Moody’s said Tuesday that the earthquake was unlikely to impact the sovereign’s A1 ratings, which remain on positive outlook. Fitch reiterated its A grade with a stable outlook.