Fitch upgrades Eldorado Brasil

Fitch Ratings said it upgraded Eldorado Brasil Celulose SA's long-term foreign- and local-currency issuer default ratings to BB- from B.

Fitch also said it upgraded the company's national long-term rating to A(bra) from BBB-(bra) on the company's second debentures due 2027 in the amount of R$940 million.

The rating on the 2021 unsecured notes issued by Eldorado Intl. Finance GmbH, and guaranteed by Eldorado and Cellulose Eldorado Austria GmbH, was upgraded to BB- from B with recovery rating of RR4.

All of the ratings were removed from Rating Watch evolving.

The outlook is positive.

These upgrades reflect strong pulp prices, which improved the company's free cash flow generation and a reduction in uncertainty surrounding Eldorado's ownership structure, Fitch said.

Eldorado's business profile is strong and reflects its excellent position in the production cost curve due to productive forests, the agency added.

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