Moody's might lower Rayonier

Moody's Investors Service said it placed the Baa1 senior unsecured rating of Rayonier Inc. and its subsidiaries under review for downgrade.

The review was precipitated by the company's announcement that it will spin off its performance fibers business into a separate company.

Upon completion of the separation, Rayonier will be comprised of the company's existing forest resources and real estate businesses.

Moody's said the review will focus on the anticipated capital structure and operating and financial performance of Rayonier after the spinoff, financial policies including dividends, post-closing credit metrics (including timberland asset coverage) and Rayonier's ability to maintain strong liquidity.

The agency said the review will also focus on the supply and demand of saw and pulp logs in the U.S. South and Pacific Northwest and the pace of real estate development with the recovery of the U.S. housing market.

© 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.