S&P: Stadacona, Bear Island on watch positive

Standard & Poor's said it placed its ratings on Stadacona Inc. and Bear Island Paper Co. LLC on CreditWatch positive.

On watch are Stadacona's B corporate credit rating, B+ senior secured revolving credit facility rating and B senior secured term loan rating and Bear Island's B- corporate credit rating, B- senior secured revolver rating and CCC+ senior unsecured notes rating.

S&P said this rating action follows the announcement by Brant Allen Industries Inc., parent company of Bear Island, that it is contemplating a restructuring that would bring Bear Island, Stadacona and F.F. Soucy Inc. under the common control of Brant-Allen.

While details of the contemplated restructuring have not been released, S&P said it expects the resultant combined entity would have a stronger credit profile than Stadacona or Bear Island alone because of greater operating diversity and larger scale.

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