S&P changes Metsa Board to positive

Standard & Poor's said it revised the outlook on Metsa Board Corp. to positive from stable.

At the same time, the agency affirmed the B+/B long- and short-term corporate credit ratings on Metsa and the B+ issue rating on its senior unsecured debt. The recovery rating is unchanged at 4, indicating an expectation of average (30%-50%) recovery in the event of a payment default.

S&P said the outlook revision primarily reflects its expectation that Metsa could improve its profitability and cash flow generation in the coming 12 months and that such an improvement would lead to a sustainably stronger business risk profile.

This stems from the agency’s view of the continuing stability of the company's core paperboard operations and growth in new products and markets. As a result, S&P revised its assessment of Metsa’s business risk profile upward, to fair from weak, leading to an anchor of bb- compared with b+ previously.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.