Moody's upgrades Boise Cascade

Moody's Investors Service said it upgraded Boise Cascade Co.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and senior unsecured bond rating to Ba3 from B1.

The speculative grade liquidity rating remains at SGL-1 and the outlook is stable.

The upgrade reflects a sustained improvement in Boise Cascade's financial and operational performance and a view that leverage will further decline over the next 12 to 18 months, Moody's said.

This is despite a slower-than-expected improvement in the U.S. housing market, the agency said.

The ratings primarily reflect the company's strong liquidity and expectations that the company will be able to maintain good credit protection metrics with a slow recovery in the North American wood-based building products market, Moody's said.

The ratings also consider the company's good vertical integration and strong market position as a building materials distributor and leading engineered wood products and plywood producer in North America, the agency said.

The ratings also take into account the company's strong liquidity position, Moody's said.

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