(05/29/2015) The Standard & Poor rating agency raised the credit note of the copper producer Paranapanema on a national scale from “BBB” to “BBB+” with a positive outlook on Friday. The note on global scale of the company was maintained at “B+” with review of the outlook, which went from stable to positive.

According to S&P, the increase is due to improved results of Paranapanema, generating stronger and more stable margins and Free Cash Flow even amid a weaker demand scenario.

The positive outlook, according to S&P, indicates that there may be the increase of rating in the next 12 – 18 months.

Paranapanema has been showing gradual improvement in results in the last six quarters. In the first quarter of 2015, the company zeroed the accumulated losses registering a cumulative profit position of R$ 32.4 million. The gross margin reached 10.6% against 6.9% in the same period last year and the Adjusted EBITDA was R$ 108.9 million, up 9% over the same period.

The company’s shares, listed on the New Market of BM&FBovespa, showed an increase of 75.3% in 2015, well above the Ibovespa (main index of the Stock Exchange), which is up 7.9%.