...March 2, 2023 TORONTO (S&P Global Ratings) March 2, 2023--S&P Global Ratings today said it downgraded Domtar Corp.'s senior secured notes to '##' from '##+' and revised the recovery rating to '3' from '2' following the announced completion of the acquisition of Resolute Forest Products (Resolute) by Domtar. The capital structure upon close of the acquisition includes a higher proportion of secured claims than was previously the case and contributes to weaker recovery prospects, in our view. Our other ratings on the company, including our '##' long-term issuer credit rating, with a negative outlook, and our '##' issue-level rating on the company's unsecured notes, are unchanged. Resolute is now a 100% owned subsidiary of Domtar operating under the Resolute Forest Products name. Debt financing for the acquisition resulted in a net increase to secured debt of about US$666 million in addition to a $US210 million draw under an asset-based loan (ABL) revolving credit facility that was recently...
