S&P: M-real outlook stable

Standard & Poor's said it revised the outlook on M-real Corp. to stable from positive and affirmed the long- and short-term corporate credit ratings at B- and B, respectively.

In addition, S&P said it affirmed the issue ratings on the senior unsecured debt at B-. The recovery rating on this debt is 4, indicating an expectation of average recovery in the event of payment default, the agency said.

S&P said the outlook revision primarily reflects its opinion that the likelihood of an upgrade has materially declined. The agency said it bases this view on a combination of a weakening performance in the second half of 2011, expectations of cash restructuring outlays over the coming two quarters, and growing uncertainty about market conditions over the near term.

In addition, the group faces a refinancing need in April 2013, which could put pressure on its liquidity profile unless resolved by the end of the first quarter of 2012, the agency said.

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