S&P affirms Klabin

Standard & Poor's said it affirmed its BB- foreign currency and BB local currency corporate credit ratings on Klabin SA.

The outlook is stable.

The local currency rating reflects the company's exposure to the volatilities of the Brazilian economy (as packaging products bear a close correlation to GDP), as well as a still-fragmented market for corrugated boxes that does not allow for pricing policies consistent with the company's leading market share. These risks are partially offset by Klabin's very competitive cost position, some diversification into exports (30% of sales with steady growth in exports of kraftliner), and its comfortable capital structure.

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