Moody’s downgrades Rayonier, notes

Moody's Investors Service said it downgraded Rayonier A.M. Products Inc. (RYAM) corporate family rating to Ba3 from Ba2, probability of default rating to Ba3-PD from Ba2-PD and senior unsecured notes due 2024 to B1 from Ba3.

The outlook is stable.

The agency also raised the speculative grade liquidity rating to SGL-1 from SGL-2 to reflect the company's strong liquidity position.

"The downgrade reflects the company's high leverage and the expectation that challenging industry conditions will limit RYAM's ability to materially improve its leverage over the next 12 to 24 months," Moody's senior vice president Ed Sustar said in a news release.

"Despite RYAM's focus on paying down debt, we expect that the company's EBITDA will decline faster than debt reduction."

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