Fitch rates Eldorado notes BB-

Fitch Ratings said it assigned an expected BB- rating to the proposed 2026 senior unsecured notes to be issued by Eldorado Intl. Finance GmbH, and guaranteed by Eldorado Brasil Celulose SA and Cellulose Eldorado Austria GmbH.

The senior notes will be a benchmark-sized issuance due in 2026.

The proceeds will be used for liability management, improvement of the company's debt-maturity profile and general corporate purposes, Fitch said.

Eldorado's currently has foreign-currency and local-currency issuer default ratings of BB- and positive outlook.

The ratings reflect strong pulp prices that have improved the company's free cash flow generation and a reduction in uncertainty surrounding Eldorado's ownership structure, Fitch said.

The latter factor has increased clarity about the company's future capital structure and should enhance the company's ability to obtain financing from multiple sources, the agency said.

Eldorado's business profile is strong and reflects its excellent position in the production cost curve due to productive forests, a favorable climate for growing trees and a modern pulp mill, Fitch said.

© 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.