S&P: Domtar outlook negative

Standard & Poor's said it revised the outlook on Domtar Corp. to negative from stable and affirmed its BB long-term corporate credit rating.

"We revised the outlook based our expectations of Domtar's weaker EBITDA generation in 2009 as demand for uncoated freesheet and pulp continues to decline," S&P analyst Jatinder Mall said in a statement.

Ratings reflect the company's leading market position in the North American uncoated freesheet market and good cost profile, the agency said.

Ratings are constrained by a steady decline in demand, volatile commodity prices and a weak lumber business, S&P said.

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