Moody's assigns Ba1 to Klabin

Moody's Investors Service said it assigned a Ba1 corporate family rating to Klabin SA. This is the first time Moody's assigned ratings to Klabin.

“Klabin's Ba1 rating reflects the company's good liquidity profile, historically strong EBITDA margins, product diversification through market pulp and paper and packaging products, which include kraftliner, coated boards, industrial bags and corrugated boxes, as well as well-balanced revenue and EBITDA sources. The rating also incorporates Klabin's solid market position as one of the largest integrated pulp and paper packaging producers in Latin America. The company benefits from a flexible business model, which allows for rebalancing of export volumes or changes in the product mix to respond to shifts in demand,” Moody’s said in a press release.

The outlook is stable and incorporates an expectation that Klabin will maintain good liquidity and manage capital spending and dividend distribution judiciously, without compromising its leverage and liquidity in the next 12-18 months, the agency said.

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