(Spain, August 01, 2016) Standard & Poor’s has upgraded its outlook on Ence – Energía y Celulosa – from stable to positive and maintains its BB- corporate credit rating.
The outlook improvement reflects the potential for a credit rating upgrade in the next 12 months due to Ence´s strong profitability and cash flow generation, along with its sustained low leverage, high credit ratios and liquidity position, even in lower pulp price scenarios.
Standard & Poors expects Ence´s operating margins and return on capital to remain above the broader paper and forest products sector and acknowledges Ence`s logistics and commercial advantages based on the strategic location of its mills, and its exposure to growing end-markets such us tissue.
Ence is one of the main European producers of eucalyptus pulp, the most important Spanish company in the production of renewable energy using forest biomass and the leader in Spain for the comprehensive and responsible management of forest areas and resources. (Source: press release)