S&P lowers Millar Western view to negative

Standard & Poor's said it revised the outlook on Millar Western Forest Products Ltd. to negative from stable.

The agency also said it affirmed the B- long-term corporate credit rating on the company, as well its B- rating on Millar Western's senior unsecured notes due 2021. The 4 recovery rating on the debt is unchanged.

The outlook revision reflects concerns about the company's deteriorating profitability stemming from lower pulp prices and negative cash flow generation, S&P said.

The ratings consider the company's highly leveraged financial risk profile, participation in the highly cyclical, fragmented and competitive pulp and lumber industries and limited geographic diversity, the agency said.

These weaknesses are partially offset by the company's modern, efficient assets and high degree of fiber and energy self-sufficiency, S&P said.

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