S&P rates Plum Creek notes BBB-

Standard & Poor's said it assigned a BBB- senior unsecured debt rating to the proposed $500 million senior unsecured notes due 2021 of Plum Creek Timberlands LP.

The notes will be guaranteed by parent, Plum Creek Timber Co. Inc.

The company plans to use proceeds from the notes primarily to repay debt maturing in 2011 and 2012, as well as borrowings under its revolving credit facility.

The ratings reflect the company's satisfactory business risk profile as one of the largest timberland owners and managers in the United States, with significant operating flexibility, substantial geographic diversity and a sizable portfolio of higher-and-better use properties, S&P said.

The ratings also consider the company's somewhat limited activities in cyclical markets, the variability in its credit protection measures and the sizable amount of cash that it returns to shareholders on average, the agency said.

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