Summary: Domtar Corp.

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 cost profile from vertical integration Low leverage, with an expectation that debt-to-EBITDA will remain below 2x in the next few years Elevated capex this year, with investments in the personal care segment Financial policy favors return of capital to shareholders The stable outlook on Domtar reflects Standard&Poor's Ratings Services' expectation that the company will continue to generate very strong cash flow from operations, which supports shareholder-friendly returns while maintaining adjusted debt-to-EBITDA at about 2x. Although we expect Domtar's expansion of its personal care

...Outlook: Stable The stable outlook on Domtar reflects Standard & Poor's Ratings Services' expectation that the company will continue to generate very strong cash flow from operations, which supports shareholder-friendly returns while maintaining adjusted debt-to-EBITDA at about 2x. Although we expect Domtar's expansion of its personal care segment to provide diversity and stability of cash flows as it grows, the company's core pulp and paper business remains largely exposed to a secular decline in North America UFS demand and volatile pulp prices, which constrain the business risk profile....

Summary