Fitch ups Bio-Pappel

Fitch Ratings said it upgraded the foreign- and local-currency issuer default ratings of Bio-Pappel SAB de CV to B from CCC, along with the company's notes due in 2016 to B with a recovery rating of RR4 from CCC with a recovery rating of RR4.

A stable outlook was assigned.

The upgrade reflects an improvement in the company's liquidity due to the favorable operating environment during the last 12 months, Fitch said.

This has allowed the company to generate $54 million of cash flow from operations and build its cash position to $88 million as of June 30, the agency said.

This compares with $266 million of total debt, of which $250 million is related to the senior guaranteed step up notes that mature Aug. 27, 2016, Fitch said.

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