Research Update: Fibria Celulose S.A. Outlook Revised To Stable From Positive, 'BB' Ratings Affirmed Nov 11
- Language: English
- Published: November 2011
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.
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Fibria Celulose S.A.,Celulosa Arauco y Constitucion S.A.,Klabin S.A.,Stora Enso Oyj,Suzano Papel e Celulose S.A.