TORONTO (Standard&Poor's) June 10, 2009--Standard&Poor's Ratings Services today said it assigned its 'BB-' issue-level rating (one notch below the corporate credit rating on the company) to Domtar Corp.'s US$400 million senior unsecured notes due June 2017. We assigned a '5' recovery rating to the notes, indicating modest (10%-30%) recovery in the event of default. The proceeds from these notes will be used to replace part of Domtar's 7.875% unsecured notes outstanding due 2011, and for general corporate purposes. "The 'BB' corporate credit rating and negative outlook on Domtar reflect our view of the company's leading market position in the North American uncoated free sheet market and good cost profile," said Standard&Poor's credit analyst Jatinder
