Investor Relations

POR

Indebtness and Ratings

Indebtedness and Financial Investments

Gross debt on September 30, 2018 was R$ 20,141 million, a R$ 649 million increase in relation to the end of 2Q18, mainly due to the impact of FX rates on Company debt denominated in US Dollars, in addition to new funding to lengthen debt maturity profile and compensating borrowings maturing during the quarter. Out of total debt, R$ 14,611 million, or 73% (US$ 3,653 million), is US Dollar denominated. Average maturity on all outstanding debt now stands at 45 months, of which 38 months for loans in Reais and 48 months in currency-denominated lines. Short-term debt at the end of the quarter was 11% of the total with the average cost of domestic market funding and currency-denominated lines being 7.5% p.a. and 5.0% p.a. respectively.

The company’s position in cash and cash equivalents at the end of 3Q18 amounted to R$ 7,325 million, R$ 430 million more than at the end of the 2Q18 due mainly to strong cash generation during the period. This amount is sufficient to cover debt payments maturing over the next 33 months.

Consolidated net debt on September 30, 2018 amounted to R$ 12,816 million, a R$ 219 million increase compared with June 30, largely reflecting the devaluation of the Real in relation to currency denominated debt, partially offset by cash generation. Strong cash generation during 3Q18 strengthened Klabin’s deleveraging trend, ending the quarter with an adjusted net debt/EBITDA ratio of 3.4x, a 0.5x reduction compared to the end of 2Q18.

Rating

Agency Rating Outlook Latest Update
Standard & Poor's BB+ Stable Jun-16
Fitch Ratings BB+ Stable may-17
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