Moody's rates Mercer notes B3

Moody's Investors Service said it assigned a B3 rating to $300 million of new senior unsecured notes offered by the restricted group of Mercer International Inc.

Concurrently, Mercer's corporate family rating and probability of default rating were upgraded to B2 from B3, the agency said, adding that the outlook was changed to stable from positive and the SGL-2 speculative-grade liquidity rating was affirmed.

The upgrade in Mercer's corporate family rating to B2 reflects earnings improvement, modest debt reduction, and lingering strength in market pulp prices that is expected to benefit Mercer's liquidity profile and capital structure, Moody's said.

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