S&P lowers Fibria Celulose view to negative

S&P said it revised its outlook on Fibria Celulose SA to negative and affirmed the BBB- corporate credit rating on the company.

At the same time, S&P affirmed the BBB- issue-level rating on financial vehicle Fibria Overseas Finance Ltd.'s bonds, which Fibria fully guarantees.

“The outlook revision reflects our view that Fibria's leverage metric is likely to reach 3.7x-3.9x in 2017 and possibly exceed 4x if pulp prices remain at current levels and the Brazilian real stays at R$3.3 per $1. Such a scenario would demand additional measures to comply with the company's financial policy that mandates its leverage metric to remain below 3.5x during expansions and 2.5x in normal times,” S&P said in a news release.

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