Moody’s revises ENCE Energia to stable

Moody's Investors Service said it changed ENCE Energia y Celulosa, SA's rating outlook to stable from negative and affirmed the Ba3 corporate family rating, Ba3-PD probability of default rating and the B1 senior secured notes rating.

"The stabilization of the outlook reflects the success of management's restructuring plans initiated in 2014 that have been successful in recovering profitability and improving credit metrics now fully commensurate with the Ba3 rating level," Matthias Volkmer, lead analyst for ENCE, said in a news release.

"However, ENCE's pulp operations have been benefitting from a combination of elevated USD/EUR exchange rates and historically high pulp price levels bound to come down as substantial production capacities come on stream over the next 2 years.”

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