Moody's lifts Domtar

Moody's Investors Service said it upgraded Domtar Corp.'s corporate family rating to Ba1 from Ba2, senior secured debt rating to Baa2 from Baa3, senior unsecured note rating to Ba2 from Ba3 and affirmed its liquidity rating at SGL-1.

The outlook is stable.

The upgrade recognizes the company's strong financial performance and significant de-leveraging following the successful completion of its recent tender offer resulting in the early repayment of $425 million of outstanding debt, the agency noted.

Pro forma for the completion of the tender offer, Moody's said it estimates Domtar's last 12 months of adjusted debt/EBITDA leverage improved to about 1.9x from 2.4x.

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