Pulp and electricity producer ENCE Energia y Celulosa S.A. (Ence) continues to demonstrate improving operating performance and credit measures as a result of strong profitability. Despite our expectations of lower pulp prices, we think that the group's improved cost structure will continue to support profitability over the next 12 months. We are therefore revising our outlook on Ence to positive from stable and affirming the 'BB-' ratings. The positive outlook reflects the one-in-three likelihood that we could raise the rating to 'BB' over the next 12 months if Ence continues to exhibit strong credit measures while maintaining prudent financial policies. On July 29, 2016, S&P Global Ratings revised its outlook on Spanish pulp and electricity producer ENCE Energia y Celulosa
