S&P rates Ainsworth Lumber notes B+

Standard & Poor's said it assigned a B+ ratings to Ainsworth Lumber Co. Ltd.'s proposed new issues of $300 million of fixed senior unsecured notes due 2012 and $150 million of floating variable-rate senior notes due 2010.

S&P also affirmed its B+ long-term corporate credit and senior unsecured debt ratings on Ainsworth and removed from them from CreditWatch, where they had been placed on Aug. 26 following the company's announcement to purchase all of Potlatch Corp.'s oriented strandboard manufacturing and related facilities for about $457.5 million.

"Although the purchase is being financed with additional debt, we believe Ainsworth will be able to generate sufficient cash flow to achieve a credit profile consistent with the existing rating, even if OSB prices decline significantly," said S&P credit analyst Daniel Parker.

© 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.