Moody's raises Eldorado Brasil Celulose

Moody's Investors Service said it upgraded Eldorado Brasil Celulose SA’s corporate family rating to Ba3 from B1.

“Eldorado's rating upgrade to Ba3 reflects the company's improved liquidity risk resulting from significant progress over the last year in reducing short term debt and extending maturities, despite the uncertainty resulting from the ongoing shareholder dispute. The Ba3 rating also reflects the company's strong operating performance, comparing well with peers in this rating category,” Moody’s said in a press release.

However, ongoing shareholder litigation and other issues, such as single-plant operations, constrain the rating, the agency said.

The outlook is stable.

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