Moody's rates Suzano notes Baa3

Moody's America Latina Ltda. said it assigned a Baa3 global scale rating and an Aa1.br Brazilian national scale rating to the R$500 million outstanding local-currency senior debentures issued by Suzano Papel e Celulose SA in two series due in 2014 and 2019, respectively.

The foreign-currency rating on Suzano Trading Ltd.'s $650 million senior guaranteed bonds due 2021 remains Baa3.

The outlook for all ratings is stable.

The agency said the ratings consider Suzano's position as a low-cost producer of bleached eucalyptus kraft pulp and paper, the benefits it receives from its high level of vertical integration and the company's prudent financial management as evidenced by its solid liquidity position and good risk-management practices.

Operational diversity is constrained by the concentration of market pulp production in the Mucuri site location, Moody's said, and an additional constraining factor is the company's significant exposure to foreign currency as a large portion of its costs are in local currency while revenues are linked to the dollar.

The total adjusted net debt-to-EBITDA ratio was 3.4 times as of Sept. 30.

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