S&P lowers Lecta, notes to B

Standard & Poor's said it lowered its long-term corporate credit rating on Lecta SA to B from B+.

The outlook is stable.

At the same time, the agency lowered its issue rating on Lecta's €200 million senior secured fixed-rate notes due 2019 and €390 million senior secured floating-rate notes due 2018 to B from B+. The recovery rating on these notes is unchanged at 4, reflecting an expectation of average (30%-50%) recovery prospects for senior secured noteholders in an event of default.

S&P said the downgrades reflect its view that Lecta's profitability has weakened over several successive quarters, with its S&P-adjusted EBITDA margin now lower than it previously forecasted, and below average compared with that of its forest products peers.

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