DBRS downgrades Kruger

DBRS said it downgraded Kruger Products LP’s senior unsecured notes to B (high) based on a recovery rating of RR6 from BB (low) and a recovery rating of RR5.

The agency also confirmed the company’s issuer rating at BB.

The trend is stable.

The downgrades reflect the structural subordination to Kruger's new senior secured credit facility, DBRS said.

The ratings reflect the business benefits of the TAD2 Project, including future improvements to the business risk profile once the project fully ramps up, the agency said.

The project will allow the company to increase and rebalance its premium tissue capacity across North America and increase its offering of tissue products, the agency said.

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