Empresas CMPC S.A. Update following affirmation at Baa3, stable outlook. CREDIT OPINION 19 December Update. Summary

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1 CREDIT OPINION Empresas CMPC S.A. Update following affirmation at 3, stable outlook Update Summary RATINGS Inversiones CMPC S.A. Domicile Chile Long Term Rating 3 Type Senior Unsecured - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts rbara Mattos, CFA VP-Sr Credit Officer barbara.mattos@moodys.com Marianna Waltz, CFA MD-Corporate Finance marianna.waltz@moodys.com CLIENT SERVICES Americas Asia Pacific Japan EMEA CMPC's 3 ratings are supported by the company's market position as one of the world's largest and low cost pulp producers with integrated paper operations throughout Latin America, and its well-balanced revenue source, split into pulp (46%), tissue (38%) and paper (16%) in 3Q17. CMPC's product mix diversification has historically resulted in margin stability, mitigating to some extent the effects of more volatile segments such as pulp. Accordingly, adjusted EITDA margins stayed in the 19%-22% range since 2011, despite the high volatility in the pulp industry over the past years. CMPC's low cost position in the global forest products industry, an adequate liquidity profile, and timberlands valued at about USD 3.5 billion also support the ratings. The ratings incorporate a one notch benefit for the company s timber asset coverage, since CMPC has 671,000 planted hectares with a fair value of USD 3.5 billion, which covers total debt by 0.8x. The timberlands are an important strategic asset that generates sustainable earnings or can be monetized to enhance liquidity. CMPC s ratings incorporate its cash flow dependence and exposure to volatile market pulp prices, which are largely driven by China and by demand in developed markets. An additional constraint to the ratings is the slow deleveraging process executed by the company over the past several years. As a result of a combination of lower pulp prices in 2016, lower-than expected growth in paper and tissue markets in Latin America in and pulp supply disruptions in 2017, CMPC's total adjusted debt to EITDA remained in the 4.0x-4.7x range since 2015, when the Guaíba II expansion started up, adding 1.3 million tons of hardwood pulp capacity. The affirmation of CMPC s ratings on December 18, 2017 reflects the expectation that its performance and credit metrics will improve in the next 12 to 18 months. We estimate the company will be able to reduce leverage to levels close to 3x (from in LTM ended September 2017), and will continue to generate positive free cash flows while maintaining an adequate liquidity position, despite pulp supply disruptions faced in 2017 with the extended downtime at Guaíba II line.

2 Credit Strengths» Low cost manufacturer of wood, pulp, tissue and paper products in Latin America» Large scale and relevant market share in its main markets and segments» Good product and geographic diversification» Presence in less volatile segments such as tissue and paper and packaging» Timberland value benefits the rating by one notch Credit Challenges» Exposed to the inherent volatility of the pulp industry» Lower economic growth in key markets for tissue, boxes and wood products in Latin America» New hardwood capacity ramping up during 2018 will pressure prices» Lower production volumes in 2017 due to extended downtime at Guaíba II line Rating Outlook The stable outlook reflects our expectation that, even though CMPC's metrics may face some deterioration in the short-term due to the longer than expected downtime at Guaíba II, they will recover relatively fast now that the repair is completed. The outlook also incorporates our expectations that the company will maintain an adequate liquidity profile and will not embark in any major expansion project that could compromise its leverage and cash flows. Factors that Could Lead to an Upgrade The rating could be upgraded if Debt/ EITDA is considered sustainable at below 3.0x and if free cash flow stays positive on a consistent basis. An upward rating movement would also require CMPC to maintain strong liquidity position. Factors that Could Lead to a Downgrade The ratings could be downgraded if CMPC's operating performance does not improve and its current liquidity profile deteriorates. Negative pressure could arise if market conditions deteriorate such that timberland values decline significantly, leading to lower asset coverage (timberland value/debt coverage materially below 1x). Quantitatively, the ratings would be downgraded if CMPC's Debt/ EITDA exceeds 4.0x on a consistent basis or if free cash flows are persistently negative. Key Indicators Exhibit 1 Empresas CMPC S.A. 9/30/2017(L) 12/31/ /31/ /31/2014 $5.1 $4.9 $4.8 $4.8 $5.0 EITDA Margin % 21.7% 20.7% 22.1% 20.9% 19.3% RCF / Debt 13.7% 14.1% 9.4% 9.6% 13.0% (RCF - CAPEX) / Debt 5.1% 3.6% -7.9% -22.5% -7.2% Debt / EITDA 4.0x 4.7x 4.3x EITDA / Interest Expense 4.9x 4.7x 5.5x 5.2x 5.3x Revenues (USD illion) 12/31/2013 All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. Source: Moody's Financial Metrics This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history. 2 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

3 Profile Headquartered in Santiago, Chile, Empresas CMPC S.A. is a large producer of pulp, tissue, wood, and other paper and packaging products. Its wholly-owned subsidiary, Inversiones CMPC S.A. (CMPC), is an intermediate holding company and the issuer of the rated debt securities. CMPC produces and sells a wide range of products including saw logs, pulpwood, lumber, plywood, remanufactured wood products, bleached softwood and hardwood pulp, packaging paper, boxboard, consumer tissue products, corrugated boxes, and multi-wall bags. As of September 30, 2017, the company has approximately 671 thousand hectares of planted forestry area in Chile, Argentina, and razil. CMPC owns three sawmills in Chile with a capacity of approximately 1 million cubic meters per year. In addition, it has two remanufacturing mills and a plywood mill. The pulp division produces about 4.1 million tons at its Laja, Pacifico, Santa Fe, and Guaiba mills. Other production levels on a per year basis include tissue products of 699,000 tons, folding boxboard of approximately 429,000 tons, paper bags of 106,500 tons, corrugated paper of 316,000 tons and corrugated boxes of about 240,000 tons. For the twelve months ended September 2017, CMPC generated total revenues of USD 5.1 billion. Detailed Credit Considerations LARGE SCALE, RELEVANT MARKET PRESENCE AND DIVERSIFICATION LEAD TO STALE PROFITAILITY Despite the wide variety of its product offerings, CMPC has three main operating segments: pulp-forestry, tissue and paper. Such diversity helps mitigate the more volatile nature of the pulp industry and other commodity-like products sold by CMPC. The tissue business benefits from more stable demand dynamics than other products in the forest products industry, and uses pulp as one of its main inputs, providing a natural hedge for CMPC's pulp business in times of pricing volatility. Accordingly, the impact of lower pulp prices is offset by higher margins on tissue and folding boxboard, while the impact of higher pulp prices in the tissue and paper segments profitability is mitigated by the increased usage of recycled paper. As a result, EITDA margins have been stable in the range of 19% to 22% (on an adjusted basis) since 2012, thanks to its integrated business model and benefiting from the expansion in hardwood pulp completed in Although the company's production is based in Latin America, which poses some geographic concentration risk for the credit, production facilities are spread across different countries and regions, and sales are well diversified geographically, with approximately 49% of CMPC's sales derived from exports to Europe, Asia, Latin America, US and others, and the remaining revenues derived from customers throughout Latin America (20% in Chile) in the third quarter The pulp-forestry business, which accounts for approximately 46% of sales and 72% of total EITDA according to third quarter 2017 figures, relies predominantly on exports to Asia and Europe. Currently, approximately 80% of CMPC's pulp production capacity is hardwood (eucalyptus) pulp, with approximately 2.5 million tons sold to third parties in the LTM ended September CMPC also sold 676 thousand tons of softwood to third parties in the same period. The Guaiba II line in razil, which started-up in May 2015, added approximately 1.3 million tons of hardwood pulp production and increasing CMPC s market share in hardwood pulp global market from 5% to 10%. This plant also increased CMPC's exposure to various geographic markets, such as USA and Middle East. The company is the second largest producers of mass consumption tissue products in Latin America with industrial operations in Chile, Argentina, Uruguay, Peru, razil, Colombia, Ecuador and Mexico. CMPC's tissue business is responsible for 38% of revenues and 21% of EITDA in the third quarter Tissue products are generally sold domestically and present defensive characteristics, with low demand elasticity. Recently, CMPC invested USD 141 million in a new tissue facility in Peru (Cañete Mill) with an annual capacity of 54,000 tons, which started operations in January CMPC's expansion strategy relies on increasing its tissue production as the tissue market grows with the increase in the population, urbanization trends and changes in standard of living. Paper businesses generated about 16% of total revenues and 7% of total EITDA in the third quarter The paper segment has a total installed capacity of 1.2 million tons/year to produce boxboard, paper bags, corrugated paper and boxes, among others. 3 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

4 Exhibit 2 Exhibit 3 Revenues by Segment EITDA by Segment 3Q17 3Q17 Tissue 21% Tissue 38% Pulp 46% Paper 7% Pulp 72% Paper 16% Source: CMPC's earnings release Source: CMPC's earnings release LOW COST PRODUCER, UT EXPANSION IN PULP INCREASED PERFORMANCE VOLATILITY CMPC is a low cost producer of both softwood (Radiata) and hardwood (Eucalyptus) pulp because of competitive geographic advantage regarding forestry yields, the short tree-harvesting cycles and also because of the proximity of its forest base to mills and ports. The Guaiba expansion strengthened CMPC's existing cost structure as the razilian forestry assets are one of the lowest cost in the market pulp industry, as well as by the synergies and economies of scale coming with this line. Currently CMPC's total production cash cost for hardwood pulp is approximately USD 300/ton, which compares with previous levels of USD /ton before the full ramp-up of the Guaíba line. Radiata pine grows at the fastest rates within limited geographic locations, like Chile. In Chile the average growth rate for Radiata Pine is 19 m³ssc/ha/year, while in the Northern Hemisphere it ranges between 2-11 m³ssc/ha/year. Consequently, the Chilean forestry industry is a low cost producer of softwood pulp. Eucalyptus trees, which are used in production of hardwood pulp, also grow quickly in Chile and razil, at an average growth rate of 43 m³ssc/ha/year. CMPC benefits from its vertical integration. The company's pulp mills are mostly supplied by its own forestry assets. Over the past three years, the company has invested in building biofuel-based electricity cogeneration plants, including new biomass boilers at Santa Fe and Laja pulp mills. CMPC has also completed its investments in cogeneration in the Talagante and Altamira tissue mills in Chile and Mexico, respectively, in the Puente Alto paper mill in Chile, becoming a company substantially self-reliant for its energy needs. Currently, CMPC s own energy generation feeds 81% of consumption in operations in Chile. The pulp-forestry segment accounts roughly for 72% of CMPC's EITDA in the third quarter 2017, leaving the company's financial performance strongly dependent upon market pulp prices. CMPC's dependence on pulp increased following the Guaiba expansion, as total pulp capacity increased from 2.8 to 4.1 million tons per year, mostly concentrated in hardwood fiber (80% of the total). Pulp prices, in particular hardwood (EK up 41% in 2017), have recovered during 2017 supported by demand growth in China, but also in Europe and in the US. However, with new hardwood pulp capacity starting-up in Asia (APP Oki mill adding 2.8 million tons in total) through , and Fibria's 1.95 million expansion ramping up in , prices will be under pressure. Still, supply growth may be offset by firm demand, particular in China, and the lack of significant capacity expansions in the next couple of years, other than APP 4 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

5 and Fibria, which may lead to a more balanced market and lower price volatility. ut an additional challenge for CMPC is represented by lower economic growth in key markets for tissue, boxes and paper in Latin America compared to levels. OPERATING PERFORMANCE IMPAIRED Y EXTENDED DOWNTIME AT GUAÍA II In 1Q17, CMPC had a 38-day unscheduled maintenance stoppage at Guaiba II caused by a mechanical failure in the recovery boiler which resulted in stoppage of the line for 38 days for repairs. After this event, the mill operated normally until its scheduled maintenance downtime in July On 10 August 2017, CMPC announced the extension of the annual maintenance downtime of the Guaiba II line until November 11 for repairs in the recovery boiler. Operations have resumed in early November, a week earlier than anticipated. The resulting total production loss for the year was 520,000 tons of hardwood pulp or 14% of CMPC s total market pulp capacity. The effect of the stoppage is estimated at USD 200 million USD 140 million in contribution margin and USD 60 million in costs. The damage is covered by insurance, but it is yet unclear the total amount that will be disbursed by insurance companies to CMPC. The strong recovery of pulp prices in 2017 (EK up 41% in 2017) allowed CMPC to limit losses due to the production loss resulting from the extended downtime at Guaíba II line. Liquidity Analysis CMPC has an adequate liquidity profile. At the end of September 2017, CMPC had USD 1.44 billion cash balance, which has been enhanced by proceeds from the USD 500 million green bond issuance in March At the end of September 2017, CMPC had USD 172 million in debt coming due until the end of 2017, all related to bank debt, which can be accommodated within the company's cash flow from operations and cash balance. During the fourth quarter, CMPC amortized the USD 500 million bond due in January 2018 with funds raised early this year, extending the debt maturity profile and increasing its financial flexibility. The next larger maturity is concentrated only in 2019, with USD 685 million debt due in the year, mostly represented by the USD 500 million notes due in November In 4Q 2016 CMPC made a USD 150 million provision for the settlement of a class-action consumer lawsuit alleging price collusion in the domestic tissue market in Chile. Additionally, in 2Q 2017, the company paid USD 13.5 million fine related to the sanctions for the collusion case in Peru. Exhibit 4 Debt Amortization Schedule, as of September 2017 in USD million 1,660 1, Cash Source: CMPC's financials CMPC's relatively high capital spending requirements related mostly to the Guaiba expansion (USD 2.1 billion) during resulted in negative free cash flows and increased leverage. We expect annual capex to remain close to USD 500 million in the next couple of years, which will support enhanced positive free cash flows. CMPC's focus is to grow in the tissue segment in Latin America, which is much less capital-intensive. esides, dividend distribution will be limited by the minimum required by law (30% of net income) and CMPC has suspended provisional dividend distribution in 2016 and 2017, which indicates its conservative financial management 5 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

6 In 2016, the decline in pulp prices delayed the company s deleveraging process (EK average prices declined by 11%), while in 2017 supply disruptions caused by an extended downtime limited sales volumes at a time of strong pulp prices (EK prices up by 41% on 2017). CMPC leverage, measured by total adjusted debt to EITDA, peaked at 4.7x in 2014, and closed the 3Q17 at. With the redemption, in last October, of its USD 500 million bonds due in January 2018 we forecast leverage has already declined to a proforma 3.9x pro-forma. We estimate the company will be able to reduce leverage to levels close to 3x by the end of 2018, considering normalized production volumes and gradual reduction in debt levels. Exhibit 5 Exhibit 6 Moody's Adjusted Debt and EITDA Moody's Adjusted Leverage USD billion Total Debt EITDA 5.0x x 4.7x 4.0x 4.3x 3.9x 4.0x 3.5x 3.0x 3.0x x 2.0x Source: Moody's Financial Metrics LTM 3Q e 2018e LTM 3Q17 Source: Moody's Financial Metrics Corporate Governance CMPC is a publicly traded corporation controlled by the Matte Group, which has a 56% share, as well as Chilean pension funds (about 10%) and the remaining is held by local and international shareholders. The controlling family does not hold any managerial position within the company. CMPC is headed by a oard of Directors consisting of nine members (two independent) elected at the annual shareholders meeting for a 3-year term. In 2016, CMPC changed the oard composition, and increased the number of members from 7 to 9, which reflects enhanced corporate governance standards implemented in the past couple of years. All senior management is appointed by the oard. In addition, the company has a Directors Committee, composed by three directors of CMPC (two are independent) which supports the interests of minority shareholders. In 4Q15 CMPC was indicted for collusion in the Tissue Paper market in Chile and Peru. The company self-reported to the authorities after the discovery of anticompetitive practices carried out by some of its executives, and fully cooperated with the investigation, while applying for leniency. Upon acknowledging of violations, CMPC decided to take all necessary actions to strengthen its compliance programs and secure a complete understanding and commitment to corporate governance policies. Those actions include the launching of a special antitrust and ethics training program for all CMPC'c executives, adequacy of internal policies and controls, and creation of a special Committee of the oard of Directors to oversee the public investigation and specific functions including, among others, the Ethics and Compliance Committee, Audit Committee, and Financial Risks Committee. In early 2017, CMPC reached an agreement to pay CLP 98 billion (USD 150 million) for the settlement of the class action consumer lawsuit in Chile and USD 13.5 million related to the fine imposed by INDECOPI in Peru. 6 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

7 Rating Methodology and Scorecard Factors MAPPING TO MOODY'S GLOAL PAPER AND FOREST PRODUCTS INDUSTRY RATING METHODOLOGY CMPC's grid-indicated rating under Moody's Global Paper and Forest Products Industry rating methodology maps to a 1, in line with the assigned rating, and gets a one-notch benefit from the timberland value. The grid-indicated rating benefits from CMPC's scale, structural cost advantages and self-sufficiency in key raw materials. Prospectively, we expect CMPC's grid-indicated rating to map to 1 (before rating lift) in a conservative scenario in which pulp prices remain pressured during 2018, impacting profitability and delaying the deleverage process. Exhibit 7 Rating Factors Empresas CMPC S.A. Current LTM 9/30/2017 Paper & Forest Products Industry Grid [1][2] Factor 1 : Scale (5%) Moody's Month Forward View As of 12/15/2017 [3] Measure Score Measure Score $5.1 $4 - $6 a) Product Line Diversification b) Geographic Diversification c) Cyclicality and Volatility d) Fragmentation and Market Position e) Growth Potential 21.7% 16% - 23% A A A A a) Revenues (USD illion) Factor 2 : usiness Profile (25%) Factor 3 : Profitability and Operational Efficiency (20%) a) EITDA Margin % b) Fiber Access and Cost c) Energy Flexibility and Cost Factor 4 : Financial Policy (15%) a) Financial Policy Factor 5 : Leverage and Coverage (35%) a) RCF / Debt 13.7% 10% - 20% b) (RCF - CAPEX) / Debt 5.1% 0.5% - 5% c) Debt / EITDA 3x - 4x d) EITDA / Interest Expense 4.9x 4.5x - 6.5x Rating: Indicated Rating from Grid Factor Rating Lift a) Indicated Rating from Grid 3 3 b) Actual Rating Assigned 3 3 All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures. As of 9/30/2017(L). Source: Moody s Financial Metrics Ratings Exhibit 8 Category INVERSIONES CMPC S.A. Outlook Senior Unsecured Moody's Rating Stable 3 Source: Moody's Investors Service 7 Empresas CMPC S.A.: Update following affirmation at 3, stable outlook

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9 Contacts rbara Mattos, CFA VP-Sr Credit Officer 9 CLIENT SERVICES Sabrina Mascher De Lima Associate Analyst Americas Asia Pacific Japan EMEA Empresas CMPC S.A.: Update following affirmation at 3, stable outlook