S&P gives BB+ to Rayonier Advanced Materials notes

Standard & Poor's said it assigned its BB+ corporate credit rating to Rayonier Advanced Materials Inc. The outlook is stable.

At the same time, S&P assigned a BB+ issue rating and recovery rating of 4 to Rayonier A.M. Products Inc.'s proposed $500 million senior unsecured notes due 2024.

The recovery rating indicates S&P expects average recovery (30%-50%) in the event of a default. RAMP is a wholly owned subsidiary of RYAM.

"The stable outlook reflects our view that RYAM will generate annual EBITDA at about $300 million over the next 12 to 18 months, resulting in positive free cash flow, modest repayment of its term loans, and the financial flexibility to pursue growth initiatives," said S&P credit analyst Tobias Crabtree in a news release.

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