S&P: Klabin view stable

Standard & Poor's said it revised the global scale outlook on Klabin SA to stable from positive and affirmed the BB long-term global scale and brAA Brazil national scale, counterparty credit ratings.

The outlook revision reflects that the company's current financial position, it will take longer than expected to post the cash generation and credit metrics expected for an upgrade to BB+, according to S&P.

Ratings reflect the company's exposure to cost increases for energy, fuel and chemicals, and the fragmented market for corrugated boxes, the agency said.

These risks are partially offset by Klabin's competitive cost position, some diversification into exports, its comfortable liquidity and capital structure, and active liability management through its current peak debt period, S&P noted.

The issuer's total gross debt-to-EBITDA ratio rose to 6 times.

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