S&P: Resolute Forest notes BB-

Standard & Poor's said it affirmed the BB- long-term corporate credit rating on Resolute Forest Products Inc.

The agency also said it assigned a BB- rating and 4 recovery rating to Resolute's proposed $600 million 2023 senior unsecured notes. A 4 recovery rating reflects 30% to 50% expected default recovery.

The outlook is stable.

The ratings are based on an expectation that all of the company's current 2018 senior secured debt outstanding will be repurchased and could change if 30% or more of the current notes remains outstanding after closing, S&P said.

The ratings reflect the company's weak business risk profile and significant financial risk profile, the agency said.

The business risk profile is considered weak primarily because of the company's large exposure to declining North American newsprint and commercial printing paper markets, S&P added.

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