S&P: Mandra Forestry on watch

Standard & Poor's said it placed the B- long-term corporate credit rating on Mandra Forestry Finance Ltd. on CreditWatch with negative implications. S&P also placed its B- issue rating on $195 million guaranteed senior notes due May 15, 2013 on CreditWatch with negative implications.

The possible downgrades reflect the risk that recent snowstorms in China could put added pressure on Mandra's already weak liquidity profile and underperforming core operations, as reflected in its persistently weak financial results, according to S&P.

Mandra's weak liquidity profile reflects the company's highly leveraged funding structure, consecutive operating losses and limited access to additional funding due to covenant restrictions, the agency said.

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