Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc. - S&P Global Ratings’ Credit Research

Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc.

Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc. - S&P Global Ratings’ Credit Research
Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc.
Published Jul 07, 2022
4 pages (2273 words) — Published Jul 07, 2022
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

The Paper Excellence Group (not rated), through wholly owned subsidiary Domtar Corp., announced plans to acquire Montreal-based diversified forest products company Resolute Forest Products Inc. Financing terms have not been disclosed, but we expect Domtar's debt levels will materially increase on completion of the acquisition, and potentially lead to credit measures that are weak for the rating. As a result, S&P Global Ratings revised the outlook on Domtar to negative from stable and affirmed all of its ratings on the company, including the 'BB' long-term issuer credit rating. The negative outlook primarily reflects the potential that higher debt associated with Domtar's planned acquisition of Resolute could contribute to prospective credit measures we no longer view as commensurate with the rating.

  
Brief Excerpt:

...July 7, 2022 - The Paper Excellence Group (not rated), through wholly owned subsidiary Domtar Corp., announced plans to acquire Montreal-based diversified forest products company Resolute Forest Products Inc. - Financing terms have not been disclosed, but we expect Domtar's debt levels will materially increase on completion of the acquisition, and potentially lead to credit measures that are weak for the rating. - As a result, S&P Global Ratings revised the outlook on Domtar to negative from stable and affirmed all of its ratings on the company, including the '##' long-term issuer credit rating. - The negative outlook primarily reflects the potential that higher debt associated with Domtar's planned acquisition of Resolute could contribute to prospective credit measures we no longer view as commensurate with the rating. TORONTO (S&P Global Ratings) July 7, 2022--S&P Global Ratings today took the rating actions listed above. The potential for higher debt at Domtar associated with its planned...

  
Report Type:

Ratings Action

Ticker
UFS
Issuer
Domtar Corp.
GICS
Paper Products (15105020)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc." Jul 07, 2022. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Domtar-Corp-Outlook-Revised-To-Negative-From-Stable-On-Plan-To-Acquire-Resolute-Forest-Products-Inc-2863453>
  
APA:
S&P Global Ratings’ Credit Research. (). Domtar Corp. Outlook Revised To Negative From Stable On Plan To Acquire Resolute Forest Products Inc. Jul 07, 2022. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Domtar-Corp-Outlook-Revised-To-Negative-From-Stable-On-Plan-To-Acquire-Resolute-Forest-Products-Inc-2863453>
  
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