Moody's cuts Tembec, outlook up to stable

Moody's Investors Service said it downgraded the senior implied, senior unsecured and issuer ratings of Tembec Inc.'s key operating subsidiary, Tembec Industries Inc. to B2 from Ba3. The outlook was changed to stable from negative.

Moody's also reduced Tembec's speculative grade liquidity rating to SGL-4 from SGL-3, indicating weak liquidity.

The rating reductions are warranted by uncertainties concerning the magnitude and sustainability of the commodity price recovery, previously noted pressure from increased pension contributions and near-term liquidity facility maturities that would leave Tembec in a vulnerable position, according to Moody's.

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