Moody's rates Votorantim Baa3

Moody's Investors Service said it assigned Votorantim Celulose e Papel SA a Baa3 global scale issuer rating and an Aa1.br Brazilian national scale issuer rating.

The outlook is stable.

Moody's said the ratings reflect the company's position as a low-cost pulp producer, its substantial self-sufficiency in wood fiber and electricity, and efficient logistics.

The ratings also benefit from the liquidity provided by the company's large timberland holdings and from the support of the Votorantim group, the agency said.

These credit strengths are partly offset by the company's small size relative to international players, by its low operating diversity and by risks associated with its capacity expansion projects, Moody's said.

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