Moody's might up Ainsworth Lumber

Moody's Investors Service said it placed the B2 corporate family rating, B2-PD probability of default rating and B2 senior secured note rating of Ainsworth Lumber Co. Ltd. under review for possible upgrade.

The review was precipitated by the company's announcement that it signed a definitive agreement to be acquired by Louisiana-Pacific Corp. (Ba3). Louisiana-Pacific is the largest oriented strandboard producer in North America.

Moody's said its review will focus on the structural and implicit credit support from Louisiana-Pacific; post-closing credit metrics taking into consideration the amount of debt refinanced by Louisiana-Pacific as a result of the change of control put; the size and pace of any cost synergies that can be realized; and Ainsworth's ability to maintain adequate liquidity.

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