Class & Assoc. maintains Atacocha AA bond rating

Credit rating agency Class & Associates has maintained its AA rating for the first and second issues of local polymetallic miner Atacocha's first corporate bond program, following a revision of the company's Q2 results. The two five-year bond issues launched on June 25 are the first tranches of Atacocha's first corporate bond program of up to US$50mn announced in March this year. The first issue is for US$4.73mn at a fixed interest rate of 6.25% and the second is for US$5.27mn at Libor plus 2.5%. The rating reflects the agency's view that Atacocha has a "high capacity" to pay off the financial commitments and is unlikely to be significantly affected by unexpected events. Atacocha posted record second quarter sales of 70mn soles (US$20.5mn) compared to 47.8mn year-on-year to produce historically high net earnings of US$4.55mn against US$3.25mn in same-quarter 2003. Peru's fifth-largest zinc and second-largest lead producer, Atacocha was founded in 1936 and operates the Atacocha and Santa Bárbara mines in central Peru's Pasco department, with the former representing 80% of production.