The risk and classification agency Standard & Poor´s (S&P) has revised its outlook for Fibria´s rating from stable to positive and maintained its ‘BB+’ note. This level is above non-investment grade speculative and is regarded as an improvement although it indicates that the financial operations are still subject to market movements.
The announcement occurred in the same week as the agency confirmed its downgrading of Brazil´s sovereign credit rating from ‘BBB’ to ‘BBB-‘, the last level regarded as investment grade.
The agency said the positive outlook of the rating reflected the company´s discipline in reducing its debt over the last two years. "We expect Brazil-based pulp producer Fibria to continue reducing its debt gradually, strengthening its credit position to the end of 2014... Our evaluation of Fibria´s “strong” competitive position reflects its position as the largest world producer of hardwood and its leadership in terms of costs in the industry due to its highly productive areas and efficient combination of assets," said S&P´s main analyst, Diego Ocampo.