S&P: Suzano Papel e Celulose view to negative

Standard & Poor's said it revised the outlook on Suzano Papel e Celulose SA to negative from stable.

The agency also said it affirmed its BB ratings.

The outlook revision follows the revision of the base-case scenario, which now incorporates a slower deleveraging trend in the next few years as uncertainties about the company's initiatives for debt reduction have grown, S&P said.

Suzano did manage to issue new equity through its shares offering and will most likely improve its credit metrics following the opening of its new pulp mill in Maranhao in late 2013, the agency said.

The company has successfully maintained sizable cash reserves relative to short-term debt maturities, S&P said, and it has reduced refinancing risk by tapping new, long-term bank loans and securing financing to conclude the Maranhao project.

However, a one-notch downgrade is possible in the next few quarters if the company can't reduce its adjusted debt-to-EBITDA ratio to below 5x by 2014, the agency said.

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