S&P affirms Eldorado Brasil

S&P said it affirmed the B- global scale corporate credit rating on Eldorado Brasil Celulose SA and its brB+ national scale rating.

At the same time, the agency removed all ratings from CreditWatch.

The outlook is negative.

S&P also affirmed the B- senior unsecured debt ratings on Eldorado's 2021 notes with a recovery rating of 4, indicating an expectation of an average recovery (35%) in case of default.

The agency said the affirmation reflects the view that the refinancing activities on trade finance lines over the last three months, coupled with higher pulp prices–and consequently higher cash flow generation–eases immediate liquidity pressures but does not entirely solve Eldorado's still high short-term debt commitments.

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