S&P lifts Ballarpur view to positive on sale news

Standard & Poor’s said it revised the outlooks on Ballarpur Industries Ltd. and its core subsidiary, Bilt Paper BV, to positive from stable.

The agency also said it affirmed the companies’ B long-term corporate credit ratings.

The ratings were then withdrawn at the company’s request, S&P said.

The outlook revision followed news that Ballarpur plans to sell its entire stake in its Malaysian unit, Sabah Forest Industries, for an enterprise valuation of $500 million, the agency said.

The positive outlook at the time of withdrawal reflected an opinion that the company will use the majority of the proceeds from the sale to repay its debt, leading to a material improvement in its leverage, S&P said.

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