Fitch hikes Eldorado

Fitch Ratings said it upgraded Eldorado Brasil Celulose SA's R$700 million of floating-rate series 14 bonds to AA+(bra) from AA-(bra). The agency also raised the issuer’s long-term foreign- and local-currency issuer default ratings to BB from BB- and national scale long-term rating to AA+(bra) from AA-(bra).

The upgrade reflects the change of Eldorado's ESG relevance score for governance structure to 4 from 5, Fitch said.

“The improvement in the ESG relevance score is due to Fitch's view that uncertainties associated with Eldorado's future shareholding structure, related to the arbitration process between J&F Investimentos SA (J&F) and Eldorado's minority shareholder Paper Excellence, no longer act as a single factor that limits the issuer's ratings,” the agency said in a statement.

The outlook is stable.

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