S&P rates Klabin notes BB+

S&P said it assigned a BB+ rating and recovery rating of 3 to Klabin Austria GmbH's $500 million 2029 and $500 million 2049 proposed senior unsecured notes.

The recovery rating of 3 indicates 50% to 70% expected default recovery.

Klabin Austria is a subsidiary of Klabin SA, which unconditionally and irrevocably guarantees the notes.

The issuance will not change the base-case view of Klabin's net leverage because the company plans to use the proceeds for liability management purposes, S&P said.

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