Investor Relations

POR

Indebtness and Ratings

Indebtedness and Financial Investments

Gross debt on June 30 was R$ 18,702 million, stable in relation to the end of 1Q17 and impacted on the one hand by the increase in exchange rate on currency denominated debt and on the other, by greater paying down of debt during 2Q17. Out of total debt, R$ 13,016 million, or 70% (US$ 3,934 million), was USDollar denominated, mainly in the form of pre-export advances.

The average maturity profile of debt held stable at the end of 2Q17, standing at 44 months, while local currency financing had an average maturity of 39 months and currency denominated lines, 47 months. Short-term debt at the end of the quarter was 12% of the total with the average cost of domestic lines at 8.3% p.a. and currency lines at FX variation plus 4.8% p.a..

The company’s position in cash and financial investments at the end of 2Q17 amounted to R$6,954 million, R$305 million less than at the end of the 1Q17. This cash position is equivalent to debt payments maturing over the next 40 months.

Consolidated net debt on June 30, 2017 amounted to R$ 11,748 million, an increase of R$ 371 million against March 31, 2017, in large part due to the currency translation effect on dollar denominated debt. Conversely, in the light of the increase in cash generation over the past twelve months, the net debt /Adjusted EBITDA remained stable compared with the preceding quarter, closing 2Q17 at 4.9 times.

Rating

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