S&P: Klabin view to positive

Standard & Poor's revised the outlook on Klabin SA to positive from stable.

S&P also said it affirmed the company's BB+ global scale and brAA+ corporate credit ratings.

The outlook revision reflects that S&P may raise the ratings on Klabin if it maintains a strong liquidity, gradually reduces gross debt and adequately funds its potential growth projects, the agency said.

S&P said it assumes the company will keep improving its operating performance in the next few years as a result of the recent cost cutting and operating efficiency initiative, maintain a competitive position in the comparatively more stable packaging paper market and potentially improve product diversification in the next few years.

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