Moody's reviews Weyerhaeuser

Moody's Investors Service said it placed Weyerhaeuser Co.'s Baa2 senior unsecured debt ratings and Prime-2 commercial paper rating under review for downgrade.

The action was prompted by the accelerated deterioration in most of the company's business segments, uncertainties over the timing of a housing and economic recovery and increased probability that Weyerhaeuser's will be unable to achieve debt reduction expectations, according to the agency.

The company also announced substantial goodwill impairment charges that may reduce the covenant headroom under its two unused revolver agreements, Moody's said.

The conclusion of the review could result in more than a one-notch downgrade.

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