S&P pares Rayonier Advanced

S&P said it lowered its ratings for Rayonier Advanced Materials Inc. to B- from B, its senior secured notes due 2026 to B from B+ and its senior unsecured notes due 2024 to CCC+ from B-. The recovery ratings on the senior secured notes and senior unsecured notes are unchanged at 2 and 5, respectively.

The agency placed all these ratings on CreditWatch with negative implications. S&P noted that Rayonier’s $318 million of outstanding 5˝% senior unsecured notes are due June 1, 2024 and that it expects the company to deliver its third consecutive fiscal year of negative free cash flow.

“The company's large cash balance has acted as a buffer in the past; however, our base-case forecasts a potential depletion in balance sheet cash at the end of 2023. While we expect some benefits from working capital management resulting in cash inflows during the year, this might not be sufficient to offset the overall impact on free cash flow. In our view, this has led to a deterioration of the company's liquidity and refinancing prospects,” S&P said in a press release.

S&P warned it could downgrade Rayonier if it cannot address the refinancing of its 2024 notes within the next 90 days.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.