Moody’s lifts Metsa Board, bond to Ba2

Moody's Investors Service said it upgraded Metsa Board Corp.’s corporate family rating to Ba2 from B1, probability of default rating to Ba2-PD from B1-PD and €225 million five-year non-call senior unsecured Nordic bond to Ba2 (LGD4) from B1 (LGD4).

The outlook is stable.

"We have upgraded Metsa Board's ratings to recognize the company's ongoing success in offsetting the accelerated decline in paper delivery volumes by increasing paperboard volumes, in particular through exports to North America," Matthias Volkmer, Moody's vice president, senior analyst and lead analyst for Metsa, said in a news release.

"We expect the company to further improve credit metrics following the announced investments in production capacities. While transformation costs and in particular the Husum investment projects will marginalize free cash flow in the coming years, the recent rights issue to help fund these projects once more underlines the commitment of the company and its majority shareholder Metsaliitto Cooperative to adhere to a balanced financial policy."

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