Investor Relations

POR

Indebtness and Ratings

Indebtedness and Financial Investments

Gross debt on December 31, 2018 was R$ 19,466 million, a R$ 695 million decrease in relation to the end of 3Q18, mainly due to the impact of FX rates on the Company’s US Dollar denominated debt. Of total debt, R$ 14,077 million, or 72% (US$ 3,637 million) are US dollars denominated, also considering the BRL debt swapped to US dollars. Worthy of mention in the period was the Company’s continuing liability management worked in 2018. Average loan maturities increased from 45 months in 3Q18 to 48 at year end, with local currency maturities at 37 months and foreign currency maturities at 51 months. Short-term debt at the end of the quarter was 11% of the total, with the average cost for local currency debt at 7.5% p.a. and exchange variation plus 5.2% p.a. for currency denominated debt.

The company’s position in cash and cash equivalents at the end of the quarter amounted to R$ 7,047 million, R$ 278 million less than at the end of the 3Q18. This amount is enough to make all debt payments maturing over the next 38 months.

Consolidated net debt on December 31, 2018 amounted to R$ 12,399 million, a R$ 417 million reduction compared with September 30, 2018 largely reflecting the impact of the appreciation of the Real on Klabin’s currency denominated debt, in addition to positive cash generation during the period. Strong cash generation during 4Q18 substantially enhanced Klabin’s process of deleveraging, ending the quarter with an adjusted net debt/EBITDA ratio of 3.1x, a 0.3x reduction compared to the end of 3Q18.

Rating

Agency Rating Outlook Latest Update
Standard & Poor's BB+ Stable Jun-17
Fitch Ratings BB+ Stable Abr-19
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