S&P: Resolute Forest Products risk profile ‘aggressive’

Standard & Poor’s said it revised its financial risk profile assessment on Resolute Forest Products Inc. to “aggressive” from “significant.”

The change reflects higher-than-expected pension-related obligations and a weak pricing environment so far this year that have tempered S&P’s expectations for earnings and cash flow, the agency said.

Despite a weaker financial risk profile, S&P affirmed its BB- long-term corporate credit rating on the company based on S&P’s continued view that the company’s liquidity is “strong.” The outlook is stable.

At the same time, S&P affirmed its BB- issue-level rating on the company’s US$600 million senior unsecured notes. The 4 recovery rating (30%-50%; in the upper half of the range) on the debt is unchanged.

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