S&P shifts Suzano view to stable

S&P said it revised Suzano SA’s outlook to stable from negative and affirmed its BBB- ratings.

“Suzano's sequential price increase announcements during the past few months, especially in China to $720 per ton from $460, suggest a faster-than-expected price recovery during 2021. This, and our projection of a weaker Brazilian real than last year, prompts us have more confidence about the company's ability to post strong EBITDA in 2021,” S&P said in a press release.

The agency said it forecasts Suzano’s 2021 EBITDA at about 50% higher than in 2020, leading to net debt to EBITDA below 3x in the second half of 2021, compared with 4.7x in December.

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