S&P lifts Klabin ratings

Standard & Poor's said it raised its local currency global scale corporate credit ratings on Brazilian paper goods company Klabin SA to BB from BB-. The foreign currency rating was affirmed at B+.

The outlook on the local currency rating is stable, and the outlook on the foreign currency rating is positive.

"The rating action reflects Klabin's commitment to maintaining a prudent financial policy, even when considering the feasibility of a more robust capital expenditure program to increase its paper and board production capacity from 2 million to 1.5 million tons/year," said S&P credit analyst Milena Zaniboni. "However, the decision on the expansion project will depend on the arrangement of proper long-term financing. As a consequence, Standard & Poor's does not expect deterioration of the company's capital structure or an increase of refinancing risks."

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