S&P affirms Mercer

Standard & Poor's said it affirmed its CC corporate credit and senior unsecured ratings on Mercer International Inc.

The outlook is negative.

The agency said the ratings reflect its continuing concerns about refinancing risk following the expiration of Mercer's tender offer to exchange its $67.3 million 8.5% convertible subordinated notes due October 2010 for new convertible subordinated notes due 2011, common stock and warrants. None of the existing notes was tendered, so the company continues to face their maturity next year.

Mercer also needs to refinance its C$40 million revolving credit facility by May 2010 and €4.3 million term loan by February 2010, S&P added.

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