Industry Report Card: Good Economics, Rising Demand Bode Well For Latin American Forest Products In 2007 Dec 06
- ID: 2040070
- December 2006
- Region: America (exc North)
- Standard & Poors
The Latin American forest products industry's credit quality remains on a positive track, still benefiting from rising margins stemming from production cost advantages, the firm worldwide demand for pulp, and the more regional demand for paper products. Increased production capacity in the region is expected for the next three years, especially from greenfield pulp projects in Brazil. However, Latin American producers are highly protected from potential supply imbalances due to their profitability in the high end of the global spectrum. The outlook is stable for the six Latin American companies Standard & Poor's Ratings Services rates in the sector, and four of them are investment grade. In September 2006, we assigned a new rating to Mexico-based Papeles Industriales de Michoacán...
Companies mentioned in this report are:
- International Paper Co.
- Celulosa Arauco y Constitucion S.A.
- Empresas CMPC S.A.
- Aracruz Celulose S.A.
- Klabin S.A.
- Stora Enso Oyj
- Grupo Papelero Scribe S.A. de C.V.
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Research Type: Commentary
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