S&P rates Abitibi-Consolidated notes B+

Standard & Poor's said it assigned a B+ rating with 1 recovery rating to Abitibi-Consolidated Co. of Canada's proposed $415 million senior secured notes. The company is a subsidiary of Abitibi-Consolidated Inc. (B-/Watch negative), which is in turn a subsidiary of AbitibiBowater Inc. (B-/negative).

The senior secured notes are part of the $1.1 billion proposed refinancing at Abitibi-Consolidated and proceeds from these notes, a proposed secured 364-day credit facility and a notes exchange will be used to retire existing credit facilities and provide the company with some liquidity.

Ratings on Abitibi-Consolidated were place on CreditWatch negative on March 10, due to the uncertainty of refinancing given current credit market conditions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.