Fitch rates Votorantim Celulose BBB-

Fitch Ratings said it assigned BBB- foreign- and local-currency issuer default ratings to Brazil-based Votorantim Celulose e Papel SA.

The outlook is stable.

The agency said Votorantim Celulose's ratings are supported by its strong business position and solid financial profile, adding that the company's most important advantage is its ability to produce bleached eucalyptus kraft pulp for approximately $215 per ton versus the $300 most European and North American pulp companies spend to produce one ton. Fitch said the company's competitive advantage is sustainable because of its access to inexpensive fiber from eucalyptus trees grown on plantations that are managed by the company.

The company ended September with $1.544 billion of debt and a net debt-to-EBITDA ratio of 1.7x. During the next 12 months, Votorantim Celulose has $364 million of debt falling due, about $200 million of which is short-term trade finance lines. Given the company's strong cash flow from operations and large cash position, Fitch said it should have ample liquidity to pay these obligations if it is not able to refinance them.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.