Spanish pulp and electricity producer ENCE Energia y Celulosa S.A.'s (ENCE's) operating performance has remained strong, while the group continues to diversify its earnings profile. We now believe ENCE's business risk has sustainably improved as a result of its growing earnings contribution from its energy division. As a result, we are raising our long-term issuer credit rating on ENCE to 'BB' from 'BB-'. We are also raising our rating on ENCE's senior unsecured notes to 'BB' from 'BB-'. The stable outlook reflects our view that ENCE's credit metrics will remain supported by favorable pulp prices and the high profitability of the energy business over the next 12 months, despite high investments and dividend payments. On April 27, 2018, S&P Global
