CHILE: Local Corporate Credit Quality To Remain Stable Until 2018 - Moody's

(RTTNews) - Chile's credit rating quality will remain stable until mid-2018, as the country's economy gradually begins to improve, according to a Moody's Investors Service. The credit rating agency expects the Chilean economy to grow less than 2.0% in 2017 and around 2.5% in 2018.

"Most Chilean non-financial companies have investment-grade ratings today, supported in part by Chile's solid sovereign credit profile, its strong institutional framework, solid financial system, and access to international capital markets," Moody's said.

Among the factors highlighted by Moody's that will help Chile's economic conditions are low interest rates, better control over inflation, and the recovery of copper prices. The rating agency, however, expects for these measures to only provide modest support for domestic consumption and growth in 2017-18

"As such, any strengthening in credit quality for mining, pulp and paper and consumer-related companies will likely depend more on company-specific initiatives," Moody's added.