Moody's rates Eldorado notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed senior unsecured notes due 2026 to be issued by Eldorado Intl. Finance GmbH, unconditionally and irrevocably guaranteed by Eldorado Brasil Celulose SA and Cellulose Eldorado Austria GmbH.

The proceeds will be used for liability management purposes, extending the company's debt amortization profile, the agency said.

The outlook is stable.

The ratings mainly reflect the company's adequate credit metrics and very strong operational performance with average EBITDA margins of 60% since 2015, Moody's said.

Eldorado has the lowest cost operation in the global pulp industry as a consequence of its privileged location, forest availability and integrated process, the agency said.

The rating also considers its position as the second largest producer of market pulp in Brazil after Suzano, Moody's said, and the fifth largest producer of market bleached hardwood kraft pulp worldwide.

The stable outlook reflects an expectation that Eldorado's low cost process will allow it to sustain a strong operating performance in the foreseen horizon, the agency added.

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