Codelco Jumps up Ratings Ladder

S&P has raised the credit rating of Chile’s Codelco by two notches to AA minus from A, it says, based on a stronger expectation of government support. The upgrade reflects the change in the agency’s assessment of the link between the state-owned miner and the Chilean government, to “integral” from “very strong.” Such an assessment earns Coldeco a match of Chile’s AA minus mark. “During the past five years, we’ve seen the government’s increasing involvement in Codelco’s long-term strategic decisions and financial policies,” S&P adds. The outlook is stable. In contrast to S&P’s more technical adjustment, Moody’s went the opposite direction last week, putting Codelco’s A1 rating on negative outlook, due to the expectation of less supportive conditions in the global copper market. Codelco is now rated A1/AA+/AA minus.