ENCE Energia y Celulosa S.A. (ENCE) is the largest eucalyptus pulp producer in Europe and the leading biomass-based renewable energy producer in Spain. We assess ENCE's business risk profile as "fair" and its financial risk profile as "significant." We are assigning our 'BB' long-term corporate credit rating to ENCE. The stable outlook reflects our view that the company's financial risk profile should remain unchanged over the medium term--with funds from operations to debt of more than 20% and leverage of less than 4x--even when pulp prices are at their lowest. On Jan. 21, 2013, Standard&Poor's Ratings Services assigned its 'BB' long-term corporate credit rating to Spanish pulp producer ENCE Energia y Celulosa S.A. (ENCE). The outlook is stable.
