S&P changes view on Resolute Forest to stable

S&P said it revised its outlook for Resolute Forest Products Inc. to stable from positive on its estimate the company will have lower cash flows from weaker timber prices and higher leverage.

“The stable outlook reflects our view that gradual recovery in U.S. housing starts should improve lumber prices. At the same time, we believe pulp prices are unlikely to deteriorate further mainly given our expectation for a gradual increase in demand and lack of meaningful capacity coming online in the near term,” S&P said in a press release.

The agency affirmed all its ratings for Resolute, including its BB- issuer credit rating.

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