Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers D > Headlines for Domtar Corp. > News item |
S&P cuts Domtar to junk
Standard & Poor's said it lowered its long-term corporate credit and senior unsecured debt ratings on Domtar Inc. to BB+ from BBB-.
S&P also cut Domtar's global scale preferred stock rating to B+ from BB and Canadian national scale preferred stock to P-4 from P-3.
At the same time, S&P revised its outlook on Domtar to stable.
S&P said the ratings on Domtar reflect the company's exposure to cyclical paper prices, aggressive debt leverage and a declining cost position due to a stronger Canadian dollar.
Leverage and interest coverage metrics have marginally improved in recent quarters, although S&P said it does not believe they will improve sufficiently to maintain investment-grade status.
© 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.