S&P rates Fibria notes BB

Standard & Poor's said it affirmed Fibria Celulose SA's corporate credit rating at BB, and assigned a BB rating to its forthcoming issuance of senior unsecured notes by Fibria's subsidiary, Fibria Overseas Finance Ltd.

The outlook is positive.

The affirmation considers the significant improvement in prices for market pulp in the past few months, S&P said, and continuing liability management by the company.

But, given the company's current high financial leverage and large maturities coming due in 2010, coupled with volatile market pulp prices, the agency said it believes evidence of debt reduction and confirmation of market trends are relevant factors for an upgrade.

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