Fitch rates Suzano Papel BB

Fitch Ratings said it affirmed Suzano Papel e Celulose SA's national scale rating of A+(bra) and the national scale rating of its debentures due in 2014 and 2019 at A+(bra).

Fitch also assigned the company a foreign-currency issuer default rating at BB and local-currency issuer default rating at BB.

The agency also affirmed Suzano Trading Ltd.'s foreign-currency issuer default rating at BB and the BB rating on its $650 million senior notes due Jan. 23, 2021.

The outlook is stable.

Suzano Trading is a wholly owned subsidiary of Suzano. The notes are unconditionally and irrevocably guaranteed by Suzano, Fitch said.

The ratings reflect the company's leading position in Brazil's printing and writing paper and paperboard markets, the agency said, and its strong position in the bleached eucalyptus kraft market pulp industry.

The ratings are constrained by high leverage ratios and by the expectation that leverage will remain high during 2012 as capital expenditures for the pulp mills rise, Fitch said.

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