S&P boosts Domtar

Standard & Poor's said it raised its long-term corporate credit rating on Domtar Corp. to BB+ from BB, along with its senior secured debt to BBB from BBB- and senior unsecured debt to BB from BB-. The recovery ratings are 1 on the senior secured debt and 5 on the senior unsecured debt are unchanged. The agency also said it raised its long-term corporate credit rating on subsidiary, Domtar Inc. to BB+ from BB and the rating on the subsidiary's senior unsecured debt to BB from BB-. The 5 recovery rating on the senior unsecured debt is unchanged.

The outlook is positive.

The upgrade reflects its reduced debt, good operating performance and management's commitment to reduce debt further, S&P said.

The ratings reflect the company's leading market position in the North American uncoated free sheet market and good cost profile, the agency said.

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