S&P cuts Millar view to negative

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Millar Western Forest Products Ltd.

The outlook has been revised to negative from stable, reflecting heightened concerns regarding the negative effect of an appreciating Canadian dollar and other cost pressures on the company's cash flow generation and earnings, S&P said.

S&P said the ratings reflect the company's exposure to volatile prices, an aggressive capital structure and limited geographic and operating diversity.

These risks are partially offset by a competitive cost production profile and a high degree of fiber self-sufficiency, the agency said.

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