...- On Jan. 8, 2021, Domtar Corp. announced the planned sale of its personal care business for US$920 million, with proceeds to be used toward debt reduction and share repurchases. - We believe the sale will weaken the company's business risk profile because we expect the volatility of Domtar's lower prospective base of earnings will increase primarily from heightened exposure to declining paper demand. - However, the planned US$600 million debt reduction is significant, and will add material financial flexibility to fund future conversions to packaging. - As a result, on Jan. 11, 2021, S&P Global Ratings affirmed its ratings on Domtar, including its '###-' issuer credit rating on the company. - The stable outlook primarily reflects the material expected improvement in Domtar's balance sheet following the divestiture of the company's personal care business, with an estimated adjusted debt-to-EBITDA ratio of close to 1x in the next two years....
