We are raising our long-term corporate credit rating on Domtar Corp. and its subsidiary Domtar Inc. (collectively, Domtar) to 'BBB-' from 'BB+'. The upgrade reflects our opinion of the company's significant debt reduction and good operating performance. At the same time, we are raising our issue-level rating on Domtar's senior unsecured debt to 'BBB-' from 'BB', and affirming the 'BBB' issue-level rating on the senior secured debt. We are also removing the recovery ratings on the secured and unsecured debt because Standard&Poor's does not have recovery ratings on investment-grade debt. The stable outlook reflects Standard&Poor's expectations that Domtar will continue to generate good cash flows in 2010 and 2011 and maintain an adjusted leverage ratio of
