Standard & Poor's Ratings Services' ratings on Suzano Papel e Celulose S.A. reflect its satisfactory business profile as a cost-competitive pulp and paper producer with an expanding presence in market pulp and other lucrative businesses, a strong domestic market position in paper, and favorable medium-term fundamentals. The ratings also reflect the company's significant financial profile, which results from strong and reasonably stable cash flows and maintenance of significant cash reserves. However, heavy capital expenditures projected for the intermediate term also affect the ratings. We also factor in the intrinsic risks of the paper and pulp industry, as a capital-intensive business that requires heavy investments in forests and industrial facilities several years in advance of production, has volatile pulp prices, and...
Companies mentioned in this report are: Suzano Papel e Celulose S.A.
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