TORONTO (Standard&Poor's) March 5, 2009--Standard&Poor's Ratings Services today said it revised the outlook on Domtar Corp. to negative from stable. At the same time, we affirmed the ratings, including the 'BB' long-term corporate credit rating, on Domtar. "We revised the outlook based our expectations of Domtar's weaker EBITDA generation in 2009 as demand for uncoated freesheet and pulp continues to decline," said Standard&Poor's credit analyst Jatinder Mall. The ratings on Domtar reflect our view of the company's leading market position in the North American uncoated freesheet (UFS) market and good cost profile. The ratings are constrained, however, by what we see as a steady decline in demand for UFS; volatile prices for commodity paper,
