S&P lowers Rayonier, notes to BB-

Standard & Poor's lowered its corporate credit rating on Rayonier Advanced Materials Inc. to BB- from BB. The outlook is stable.

S&P also lowered the issue-level rating on the company's $550 million senior unsecured notes due 2024 to BB- from BB. The recovery rating on the notes is 3, indicating an expectation for meaningful (lower half of the 50% to 70% range) recovery in the event of payment default.

S&P removed all the ratings from CreditWatch, where they were placed with negative implications on Sept. 1, 2015.

“Our stable outlook reflects our expectation that Rayonier Advanced Materials will maintain credit measures in line with an aggressive financial risk profile for 2016 based on its recent earnings guidance for the year,” said S&P credit analyst Thomas Nadramia in a news release.

“We do expect the company to maintain other cash flow coverage ratios, including EBITDA to interest in the significant range, which lends support to our stable outlook.”

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