Moody's maintains AbitibiBowater ratings

Moody's Investors Service said it removed the provisional designation on AbitibiBowater Inc.'s B1 senior secured notes, corporate family and probability of default ratings.

The provisional ratings were assigned pending its emergence from bankruptcy and the closing of the exit financing.

The outlook is stable.

The ratings reflect an expectation for the company's adjusted leverage metrics, its leading market position in terms of market share and cost position, and the company's strong liquidity position, Moody's said.

The rating also is supported by the diversification provided by the company's position in newsprint, commercial printing papers, market pulp and lumber, the agency said.

The ratings are constrained by the secular decline in demand for newsprint and the company's exposure to the volatile market pulp and weak wood products markets, Moody's added.

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