Summary: Fibria Celulose S.A. Dec 10
Standard & Poors, December 2010
Abstract
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 pulp prices at current levels, so that Fibria will likely accelerate the improvement of its financial profile. Fibria's business profile is satisfactory, given the company's very competitive cost position, world-class size of operations...
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.
Action: Review
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
Fibria Celulose S.A.,Celulosa Arauco y Constitucion S.A.,Klabin S.A.,Stora Enso Oyj,Suzano Papel e Celulose S.A.
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