Fitch cuts Votorantim Celulose, ups Aracruz

Fitch Ratings said it downgraded Votorantim Celulose e Papel's foreign and local currency issuer default rating to BB from BB+ and its national-scale rating to A+ from AA-.

Fitch said it simultaneously upgraded Aracruz Celulose SA's foreign and local currency issuer default rating to BB from BB- and its national-scale rating to A+ from A.

The outlook is stable.

Votorantim and Aracruz's respective ratings of BB and A+ reflect the linkage of the credit quality of these two companies during the past nine months. Numerous transactions have resulted in Votorantim increasing its ownership of Aracruz voting shares. By the end of 2009, Aracruz is expected to be merged into Votorantim, and the company will be renamed Fibria SA.

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