S&P affirms Rayonier Advanced Materials

S&P said it affirmed its BB- corporate credit rating on Rayonier Advanced Materials Inc. The outlook is positive.

At the same time, the agency said it affirmed the BB- issue-level rating on the $550 million senior unsecured notes due 2024 ($506 million outstanding) issued by Rayonier A.M. Products Inc. The recovery rating on the notes remains 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery to creditors in the event of a payment default.

S&P said the affirmation of the BB- corporate credit rating on Rayonier Advanced Materials reflects its view that current leverage measures of about 4.1x debt to EBITDA are in line with the BB- rating following the company’s acquisition of Canadian pulp, paper and wood products producer Tembec.

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