S&P lowers Weyerhaeuser, debt to BBB-

Standard & Poor's said it lowered its corporate credit rating on Weyerhaeuser Co. to BBB- from BBB.

At the same time, the agency downgraded the issue-level ratings on Weyerhaeuser's senior unsecured debt (which now includes Plum Creek's existing senior unsecured debt issues, now guaranteed by Weyerhaeuser) to BBB- from BBB.

S&P also lowered the short-term corporate credit rating on Weyerhaeuser to A-3 from A-2 and removed all the ratings from CreditWatch, where they were placed with negative implications on Nov. 9.

S&P said the stable outlook reflects its expectation that the company's leverage measures will average in the significant category (debt to EBITDA: 3 times to 4 times) over the next 24 months, with leverage possibly increasing to 4 times or higher in 2016, depending on the level and timing of share repurchases.

In this case, the agency would expect the company would reduce leverage to the mid-3 times area or lower by the end of 2017 using the proceeds of the sales of cellulose fibers, other assets, or timberlands.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.