S&P lifts ENCE view to stable

S&P said it revised the outlook on ENCE Energia y Celulosa SA to stable from positive.

The agency also said it affirmed the company's BB- long-term corporate credit rating.

S&P also said it affirmed the BB- rating on the group's €250 million senior unsecured debt, in line with the corporate credit rating.

The recovery rating on the senior unsecured debt remains at 4, indicating 30% to 50% expected default recovery.

The outlook revision reflects an expectation that Ence's profitability and credit metrics will likely remain close to current levels in the coming years, S&P said, and the likelihood of an upgrade was diminished.

Credit measures in 2016 were expectations, primarily due to lower-than-expected profitability in the pulp business as a result of lower realized prices, a turbine breakdown at one of its pulp mills, acquisitions in the energy business and somewhat higher shareholder returns, S&P said.

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