TORONTO (Standard&Poor's) Aug. 20, 2012--Standard&Poor's Ratings Services today said it assigned its 'BBB-' issue-level rating to Montreal-based Domtar Corp.'s (BBB-/Stable/--) proposed US$250 million senior unsecured notes. The notes and the guarantees are senior unsecured obligations of Domtar, ranking equally with all of the company's existing and future senior unsecured notes. We understand that proceeds from the proposed notes will be used for general corporate purposes including capital expenditures and strategic acquisitions, or be placed in short-term investment vehicles. While this issuance will lead to a slight increase in Domtar's debt-to-EBITDA ratio, the increase will remain within the limits of our long-term corporate credit rating on the company. We expect Domtar's adjusted leverage ratio to increase to
