S&P ups West Fraser Timber

Standard & Poor's said it raised the long-term corporate credit rating on West Fraser Timber Co. Ltd. to BB+ from BB, along with its secured debt to BB+ from BB. The recovery rating is unchanged at 4, reflecting a 30% to 50% expected recovery in a default.

The outlook is stable.

The upgrade reflects the company's low leverage and good operating performance, S&P said.

The ratings also consider its position as a leading North American lumber producer, low-cost lumber operations, high degree of fiber integration, good product diversity and low leverage, the agency said.

These strengths are somewhat offset by the company's participation in the cyclical housing construction and volatile pulp markets, S&P added.

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