S&P gives BBB- to Suzano Austria notes

S&P said it assigned its BBB- issue-level rating to Suzano Austria GmbH's proposed senior unsecured notes.

Suzano Austria is a wholly owned subsidiary of Brazilian pulp producer Suzano Papel e Celulose SA (BBB-/stable/--).

The company plans to use the proceeds to partially fund the business combination with Fibria Celulose SA (BBB-/stable/--), which S&P’s base-case scenario already incorporates.

“Our BBB- rating on Suzano incorporates its business strengths, with leading global position and favorable cost structure. In addition, the rating reflects our view that the company is committed to containing its leverage within the boundaries of its financial policy, which limits leverage to 3.5x in times of expansion,” S&P said in a news release.

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