Fitch rates Klabin notes BB+

Fitch Ratings said it assigned a BB+ rating to the proposed senior unsecured notes to be issued by Klabin Austria Gmbh and guaranteed by Klabin SA.

The proceeds are expected to total $1 billion will be due in 2029 and 2049. They will be used for general purposes and debt refinancing, Fitch said.

The company has long-term foreign-currency and local-currency issuer default ratings of BB+ and a stable outlook.

The ratings reflect the company's leading position in the Brazilian packaging sector, large forestry base providing a low production cost structure, access to inexpensive fiber and a high degree of vertical integration, the agency said.

Because of its strong market business position in packaging products and integrated operations, Klabin is a price leader in the domestic market and is able to preserve more stable sales volume and operating margins during unstable economic scenarios in Brazil, Fitch said.

The company benefits from its position as a low-cost producer of market pulp, the agency said.

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