S&P moves Mercer view to stable

S&P said it revised its outlook on Mercer International Inc. to stable from negative and affirmed its B+ issuer credit rating on the company and its B+ issue-level rating on Mercer's notes. The 3 recovery rating on the notes is unchanged.

“The outlook revision reflects our expectation that the company's cash flows, and credit measures will improve over the next two years. We expect Mercer will generate earnings and cash flow above our previous estimates over the next two years, led by higher pulp and lumber prices. We now estimate the company will generate adjusted debt to EBITDA in the mid-3x to low-4x area in 2021 and 2022, which is a meaningful improvement from 6.3x at year-end 2020,” S&P said in a press release.

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