S&P raises Louisiana-Pacific, notes

S&P said it raised its corporate credit rating on Louisiana-Pacific Corp. to BB+ from BB, and raised its issue-level rating on the company's $350 million senior unsecured notes to BB+ from BB. The 3 recovery rating remains and indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal in the event of a payment default.

The outlook is stable.

The agency said the upgrade reflects the expectation that the company will maintain adjusted debt to EBITDA below 1x throughout 2018 primarily because north central OSB prices have exceeded S&P’s estimate of $300 per thousand square feet for this year.

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