S&P rates Longview Fibre notes BB-

Standard & Poor's said it assigned a BB- senior unsecured debt rating to Longview Fibre Co.'s proposed $150 million notes due 2016 and affirmed the company's BB corporate credit rating, BBB- senior secured debt rating with a recovery rating of 1 and B+ subordinated debt rating. The outlook is stable.

Proceeds from this offering and from a proposed equity offering will be used to retire the company's $215 million of subordinated notes and to fund the cash portion of its earnings and profits distribution associated with its conversion to a real estate investment trust. The earnings and profits distribution will total $355 million to $365 million, with the cash portion capped at about 20%.

S&P said the ratings on Longview Fibre reflect its participation in cyclical forest products markets, below-average manufacturing operations and an aggressive financial profile, partly offset by its ownership of valuable timberlands and its demonstrated commitment to debt reduction.

At Dec. 31, 2005, total debt was $429 million, debt to EBITDA was 2.9x, funds from operations to debt was 25% and EBITDA interest coverage was 3.8x, the agency said.

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