Moody's affirms Abitibi long-term, SGL-4 ratings

Moody's Investors Service said it affirmed Abitibi-Consolidated Inc.'s Ba3 long-term debt ratings and its SGL-4 speculative grade liquidity rating on news that the company has agreed to divest of its 50% interest in PanAsia Paper.

The outlook is negative.

Moody's commented since Abitibi's ratings had incorporated the potential benefits of de-levering from the proceeds of potential asset sales, and given the sale price is within the value range anticipated by the agency, the transaction has no immediate impact on Abitibi's long-term debt ratings.

Ratings affirmed include Abitibi-Consolidated Inc.'s corporate family rating at Ba3, its senior unsecured rating at Ba3 and its speculative grade liquidity rating at SGL-4; Abitibi-Consolidated Co. of Canada's backed senior unsecured rating at Ba3; Abitibi-Consolidated Finance LP's backed senior unsecured rating of Ba3; and Donohue Forest Products Inc.'s backed senior unsecured rating at Ba3.

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