S&P revises Bowater recovery ratings

Standard & Poor's said it revised the recovery rating on the senior unsecured debt of AbitibiBowater Inc., Bowater Inc. and Bowater Canada Finance Corp.'s senior unsecured debt to 6 from 5.

The 6 recovery rating indicates expectation of negligible, or 0% to 10%, recovery at emergence from bankruptcy, S&P said.

The agency also revised the recovery rating on Bowater Canadian Forest Products Inc.'s senior unsecured debt to 4, indicating average, or 30% to 50%, recovery at emergence from bankruptcy, from 5.

The issue and corporate credit ratings are unchanged at D.

"Our revisions of the recovery ratings on the unsecured debt results from our updated recovery analysis, which also takes into consideration the $206 million debtor-in-possession facility for Bowater Inc. and BCPFI," S&P analyst Jatinder Mall said in a statement.

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