Fitch changes Fibria Celulose to positive

Fitch Ratings said it affirmed Fibria Celulose SA's foreign and local currency issuer default ratings at BBB- and revised the outlook to positive from stable.

At the same time, the agency affirmed the national scale long-term rating at AAA(bra) with a stable outlook.

Fitch said the outlook revision incorporates an expectation that Fibria will generate strong free cash flow following the completion of a new pulp mill (Horizonte II) at its Tres Lagoas industrial complex, which adds 1.9 million tons of annual production capacity.

Over the next 12 to 24 months, the agency said it will monitor Fibria's strategy to see if the company uses free cash flow to reduce gross debt and build a cash cushion to support a strong capital structure during future projects or market downturns.

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