S&P lifts VCP

Standard & Poor's said it raised its long-term corporate credit rating on VCP - Votorantim Celulose e Papel SA to BBB from BBB-.

The outlook is stable.

The rating action reflects the company's track record of sound financial performance and creditworthiness, coupled with reduced country risks and better economic prospects for Brazil, since the country is responsible for 100% of VCP's operations and 50% of its revenues, the agency said.

S&P added that the rating also considers Brazilian forest product companies' positive long-term trend, the contribution of Tres Lagoas market pulp mill as an important cash flow source from 2009 onward and the company's prudent organic expansion strategy.

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