Fitch changes watch on Eldorado Brasil

Fitch Ratings said it revised the watch on Eldorado Brasil Celulose SA's (Eldorado) B long-term foreign and local currency issuer default Ratings and BBB-(bra) long-term national rating to evolving from negative.

The agency also revised the watch for the 2021 notes (B/RR4) issued by Eldorado International Finance GmbH and guaranteed by Eldorado and Cellulose Eldorado Austria GmbH to evolving from negative.

Fitch said the watch reflects the uncertainty of Eldorado's credit profile following the announcement that J&F Investimentos SA entered into a share purchase agreement to sell up until the totality of its direct and indirect equity interest held in Eldorado to CA Investment (Brazil) SA, a Paper Excellence company. The transaction amounted R$15 billion and includes Eldorado's net debt of about R$7.8 billion.

Paper Excellence has seven industrial operations in Canada and in France, with an annual production capacity of about 2.3 million tons of pulp.

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