Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable

Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable
Published Apr 25, 2025
9 pages (4036 words) — Published Apr 25, 2025
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Domtar Corp?s adjusted credit measures have been trending weaker than we had previously expected, including S&P Global Ratings-adjusted debt to EBITDA expected to remain above 5x with near breakeven free operating cash flow generation (FOCF) this year. While we assume credit measures will meaningfully improve in 2026, we also consider the potential downside risk from weaker macroeconomic conditions and U.S. trade policies, as well as Domtar?s significant debt maturities in 2028. As a result, S&P Global Ratings lowered its issuer credit rating on Domtar to 'B' from 'B+'. The outlook is stable. We also lowered our issue-level rating on the company's senior secured term loans and notes to 'B' from 'B+' and lowered the senior unsecured notes to 'B-' from

  
Brief Excerpt:

...Domtar Corp's adjusted credit measures have been trending weaker than we had previously expected, including S&P Global Ratings-adjusted debt to EBITDA expected to remain above 5x with near breakeven free operating cash flow generation (FOCF) this year....

  
Report Type:

Research Update

Ticker
UFS
Issuer
Domtar Corp.
GICS
Paper Products (15105020)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable" Apr 25, 2025. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Domtar-Corp-Downgraded-To-B-From-B-On-Increased-Financial-Risk-Outlook-Stable-3359635>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Domtar Corp. Downgraded To ?B? From ?B+? On Increased Financial Risk; Outlook Stable Apr 25, 2025. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Domtar-Corp-Downgraded-To-B-From-B-On-Increased-Financial-Risk-Outlook-Stable-3359635>
  
US$ 225.00
$  £  €
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