S&P rates Votorantim Celulose e Papel

Standard & Poor's said it assigned its BBB- foreign and local currency global-scale corporate credit ratings to Votorantim Celulose e Papel SA (VCP).

The outlook is stable.

S&P noted the ratings are supported by VCP's low cost position and the consequent favorable position to weather the volatility of commodity prices, its diversified product mix, its important market position in the Brazilian paper segment as one of the three largest paper producers, its intermediary financial standpoint, characterized by strong profitability and favorable debt amortization profile, moderate financial policies and relevance to the Votorantim Group (holding company Votorantim Participações rated BBB-/stable), which it believes would be very supportive of the company.

These strengths are tempered by the company's exposure to the volatile Brazilian economy, as 50% to 60% of sales are directed to the local market, thus susceptible to the level of activity and relative high leverage for the rating category after the acquisition of Ripasa SA Celulose e Papel, the agency added.

© 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.