Moody’s changes Millar Western to Caa1-PD/LD

Moody's Investors Service said it appended a limited default (LD) designation to Millar Western Forest Products Ltd.'s probability of default rating, changing it to Caa1-PD/LD from Caa1-PD.

All other ratings are unchanged, including the Caa2 rating on the senior unsecured notes due 2021 and the Caa1 corporate family rating.

The outlook remains negative.

Moody’s said the change in the probability of default rating follows the company's announcement that it has exchanged $210 million of 8˝% senior notes due 2021 for new 9% senior secured notes due 2022 at about 62.5 cents on the dollar. The agency considers the transaction a distressed exchange, which is an event of default under Moody's default definition.

The "/LD" designation, indicating a limited default, will be removed after one business day.

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