S&P affirms Klabin

Standard & Poor's said it affirmed its BB long-term corporate credit rating on Klabin SA.

The outlook is stable.

S&P said that the rating reflects the company's exposure to the volatilities of the Brazilian economy, as well as a fragmented market for corrugated boxes that does not allow for pricing policies that are consistent with the company's leading market share and the volatile commodity nature of the Kraftliner business that might be deepened due to local currency fluctuations.

These risks are partially offset by Klabin's competitive cost position, some diversification into exports and its comfortable and improving liquidity and capital structure, the agency added.

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