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Fibria Celulose S.A. Dec 10
Standard & Poors, December 2010
One of the lowest-cost positions in pulp production worldwide. Largest market pulp producer globally. Improved market conditions, boosting cash flows. High financial leverage. Growth plans involve high capital expenditures. Somewhat concentrated customer base. The ratings on Fibria Celulose S.A. reflect the significant improvement in prices for market pulp in the past few quarters and the company's continuing liability management. However, given the company's current high financial leverage and large maturities until 2011, coupled with very volatile market pulp prices, we believe debt reduction and confirmation of market trends are relevant factors for an upgrade. The positive market environment reflects secular trends-including strong demand from China for hardwood pulp and still-low global inventories. We believe these trends will likely sustain market...
Companies mentioned in this report are: Fibria Celulose S.A.,Celulosa Arauco y Constitucion S.A.,Klabin S.A.,Stora Enso Oyj,Suzano Papel e Celulose S.A.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Fibria Celulose S.A.,Celulosa Arauco y Constitucion S.A.,Klabin S.A.,Stora Enso Oyj,Suzano Papel e Celulose S.A.