Moody’s affirms Suzano Papel

Moody's Investors Service said it affirmed Suzano Papel e Celulose SA's corporate family rating at Ba1 in in the global scale and at Aaa.br in the national scale as well as the Ba1 global scale and Aaa.br national scale ratings assigned to its senior notes.

The outlook remains negative.

The agency said the affirmation follows the announcement on March 16 of an agreement of Fibria's and Suzano’s controlling shareholders to combine the operations and shareholding basis of Fibria and Suzano.

Moody’s said the business combination will bring long-term benefits to both Fibria and Suzano in terms of scale, size, financial flexibility and will generate meaningful operating synergies and will be a transformative transaction for the fragmented pulp industry, leading to concentration that can help reduce the volatility in pulp prices with more disciplined supply and higher efficiencies.

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