Investor Relations

POR

Indebtness and Ratings

Indebtedness and Financial Investments

Gross debt on December 31, 2017 was R$ 19,550 million, a R$ 702 million increase in relation to the end of 3Q17, explained by the effect of the increase in FX rate on currency denominated debt and by new funding. Out of total debt, R$ 14,061 million, or 72% (US$ 4,251 million), are dollar denominated. Average maturity increased from 51 to 52 months, of which 40 months for loans in Reais and 53 months for currency loans. Short term debt at the end of the quarter was 13% of the total with the average cost of local funding and currency-denominated lines being 7.4% p.a. and 4.9% p.a. respectively.

The company’s position in cash and financial investments at the end of 4Q17 amounted to R$ 8,272 million, R$ 571 million more than at the end of the 3Q17 and reflecting cash generation, funding flows and amortizations during the period. The additional amount is equivalent to debt maturing over the next 40 months.

Consolidated net debt on December 31, 2017 amounted to R$ 11,278 million, a R$ 131 million increase against September 30, 2017, largely due to FX variation on US dollar denominated debt. However, an improved EBITDA during the period underscored the deleveraging trend, Klabin ending the quarter with a ratio of 4.1x, a 0.3x reduction in comparison to 3Q17. In relation to the end of 2016, the reduction was of 1.1x.

Rating

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