Fitch revises Votorantim to stable

Fitch Ratings said it affirmed the long-term foreign and local currency issuer default ratings of Votorantim SA at BBB- and its national scale rating at AAA(bra).

The outlook was revised to stable from negative.

The agency also affirmed the ratings of VSA's subsidiaries as follows: Votorantim Cimentos SA, Nexa Resources SA and Compania Minera Milpo SAA.

Fitch said the action follows the announcement that Votorantim and BNDES Participacoes SA entered into an agreement with Suzano Holding SA and other controlling shareholders of Suzano Papel e Celulose SA to combine the operations of Suzano and Fibria Celulose SA (of which Votorantim holds a 29.4% stake).

The proposed transaction includes a corporate restructuring, which will result in Suzano's ownership of all the shares issued by Fibria.

The transaction total is R$29 billion, including shares exchanged, and will be financed with $9.2 billion of new debt. The transaction is expected to close within the next 12 months.

At the closing, Fitch said it expects Votorantim to receive around R$8.5 billion in cash and R$2.3 billion in shares of the NewCo, representing a 5.6% stake.

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