Fitch rates Stora Enso bonds BBB-

Fitch Ratings said it assigned a BBB- rating to Stora Enso Oyj's senior unsecured bonds.

The bonds consist of a 3 billion in Swedish krona Stibor + 0.85% floating-rate notes due 2021, 1.25 billion in krona Stibor + 1.45% floating-rate note due 2024 and 1.75 billion krona 1.875% notes due 2024.

The ratings are at the same level as Stora Enso's issuer default rating.

The newly issued bonds rank pari passu with Stora Enso's existing bonds, Fitch said..

The proceeds will be used to finance the company's ongoing acquisition of forest assets in Bergvik Skog, which in line with its strategy to further secure wood supply, the agency said.

The acquisition will increase total debt and leverage metrics, but the agency said it expects metrics to remain within the rating sensitivities.

The ratings reflect its successful transformation toward growth businesses while limiting its exposure to the structurally declining paper market, Fitch said.

The focus on renewable solutions for packaging, biomaterials and wood products has delivered both product and geographical diversification, delivering top line growth and improving margins from 2017, the agency said,

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