Leading position in the North American uncoated free sheet (UFS) market Good cost profile Low leverage Steady decline in demand for UFS Inherent volatility in commodity pulp The ratings on Domtar Inc. reflect Standard&Poor's Ratings Services' view of the company's leading market position in the North American uncoated free sheet (UFS) market, good cost profile, and low leverage. These strengths are somewhat offset in our opinion by a steady decline in demand for UFS, and volatile prices for commodity pulp. With about one-third of industry capacity, Domtar is the largest UFS manufacturer in North America, with 3.9 million short tons of capacity and 1.9 million metric tons of pulp capacity. The majority of the company's paper capacity is
