Moody’s changes Dunn Paper view

Moody's Investors Service said it affirmed Dunn Paper Holdings, Inc.'s B2 corporate family rating, B2-PD probability of default rating, the B2 senior secured first-lien term loan and senior secured revolving credit facility and Caa1 senior secured second-lien term loan ratings.

The outlook was changed to negative from stable due to a very narrow cushion under the covenants, which constrains the company's liquidity, the agency said.

The negative outlook also reflects underperformance of both the legacy business and the Ladysmith mill, which was acquired in August 2018, due to a significant increase in pulp prices, Moody’s added.

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