S&P downgrades Mercer

Standard & Poor's said it lowered its long-term corporate credit rating on Mercer International Inc. to B from B+. The outlook is stable.

S&P also lowered its issue-level rating on Mercer's senior unsecured notes to B from B+. The 3 recovery rating on the notes is unchanged, indicating an expectation of meaningful (50%-70%) recovery in the event of default.

"We base the downgrade on our expectation that Mercer's credit metrics will be weaker than previously forecast through 2013 and early 2014," said S&P credit analyst Jamie Koutsoukis in a news release.

S&P said it expects an adjusted debt to EBITDA between 4x-6x and funds from operations to debt between 10% and 14%.

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