Moody's revises Suzano view to positive

Moody's Investors Service said it changed Suzano Papel e Celulose SA's outlook to positive from stable and affirmed the company's Ba2 global scale corporate family rating and the Ba2 rating of the $650 million notes due 2021 issued by Suzano Trading Ltd.

In addition, Moody's America Latina assigned an Aa2.br national scale rating to the company and Ba2 global scale and Aa2.br national scale ratings to its R$74.9 million CCI due 2024.

The agency said the change in outlook reflects its expectations of improvement in credit metrics from 2015 onwards, with higher margins as a consequence of a relatively high share of pulp in total sales mix, positive free cash flow generation, debt reduction and enhanced interest coverage.

Suzano's Ba2 ratings incorporate the company's position as a low-cost producer of bleached eucalyptus kraft pulp and paper and its comfortable liquidity profile, Moody’s said.

Constraining the ratings are the volatile nature of the pulp industry, the agency said.

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