TORONTO (Standard&Poor's) March 7, 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 to finance the purchase price of US$185 million of various senior unsecured notes that were recently tendered and for general corporate purposes. While this issuance will lead to a slight increase in leverage net of redemptions, the net increase results in immaterial changes to the company's credit metrics. Domtar's leverage is about 1.0x and, while
