INSUBCONTINENT EXCLUSIVE:
capital investment needs.The Chilean state-owned copper giant now sits just two notches above junk status as it navigates uncertain
financial situation continues to deteriorate despite slight improvements in credit indicators during 2024 and early 2025
this debt is set to mature later this year
Credit Downgrade as Debt Mounts Amid Chinese Slowdown
(Photo Internet reproduction)This profit slump occurred despite a marginal 0.3% production increase to 296,000 metric tons, highlighting
severe margin compression from operational disruptions and rising costs.A nationwide blackout in February 2025 reduced refined copper output
by approximately 10,000 tons
The company also faces mounting maintenance and equipment leasing expenses that continue to erode profitability.Despite these challenges,
Codelco plans to ramp up investments with approximately $6 billion in capital expenditure for 2025
This investment forms part of a broader $35 billion plan over the next decade aimed at boosting production and reviving structural
The agency sees limited room for debt reduction as Codelco continues to generate negative free cash flow.The downgrade comes amid growing
uncertainty in commodity markets, with widespread trade tensions affecting global business confidence
A potential slowdown in China would severely impact commodity demand, particularly affecting copper markets.Codelco targets increased copper
