Fitch affirms Smurfit-Stone

Fitch Ratings said it affirmed the ratings of Smurfit-Stone Container Corp. as follows: issuer default rating at B+, secured bank debt at BB+/RR1, senior unsecured debt at B+/RR4 and preferred stock at B-/RR6.

The outlook remains negative.

The agency said that Smurfit-Stone is facing significant cost inflation challenges in what looks to be a weak year for North American box demand and an expensive year for the company's capital budget.

The company is projecting $250 million in cost inflation in 2008 and benefits of $80 million to $95 million from savings in the final year of its transformation plan, the agency added.

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