On March 5, 2009, Standard&Poor's Ratings Services revised the outlook on Domtar Corp. to negative from stable. At the same time, we affirmed the ratings, including the 'BB' long-term corporate credit rating, on Domtar. We revised the outlook based on our expectations of substantially lower EBITDA generation in 2009 as demand for uncoated freesheet (UFS) and pulp continues to decline. The ratings on Domtar reflect our view of the company's leading market position in the North American UFS market and good cost profile. The ratings are constrained, however, by what we see as a steady decline in demand for UFS; volatile prices for commodity paper, pulp, and lumber products; and a weak lumber business. With about 34% of
