Our 'BBB-' rating on Domtar Corp. is derived from: Our assessment of a "satisfactory" business risk profile and "intermediate" financial risk profile, which results in an anchor of 'bbb/bbb-'. Our choice of 'bbb-' instead of 'bbb' as the anchor, which is based on the relative strength of the business risk profile being on the lower end of the range for what we consider "satisfactory." Our consideration of Domtar's competitive position within the forest products sector and the secular decline in demand for its core products. Leading position in North America's uncoated free sheet (UFS) market Declining demand in North America for printing and writing papers due to electronic substitution A growing personal care segment expected to improve earnings stability Low
