S&P lifts Ence view to stable

Standard & Poor’s said it revised the outlook on Ence Energia y Celulosa SA to stable from negative.

The agency also said it affirmed the company’s BB- long-term corporate credit ratings.

S&P also said it affirmed the recovery rating on the €225 million senior secured notes at 4, indicating 30% to 50% expected default recovery.

The rating on the notes is BB- in line with the corporate credit rating.

The outlook revision reflects a view that Ence’s credit measures have recovered thanks to the company’s turnaround plan and a supportive operating environment, S&P said.

The stable outlook also considers a view that Ence’s operational and financial performance should continue to improve over 2015 and 2016, the agency said.

The ratings reflect the company’s weak business risk profile, narrow product diversity, limited size and scope and heavy exposure to the highly cyclical pulp markets, S&P said.

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