Moody's affirms M-real

Moody's Investors Service said it affirmed the B2 corporate family rating and the B2 senior unsecured debt ratings of M-real Oyj in addition to the B2 senior unsecured guaranteed medium-term note program rating of its majority-owned subsidiary, Metsae Group Financial Services Oyj, following the company's announced plans to divest assets and close mills and paper machines.

The outlook remains negative.

Moody's said it views the intention of M-real to sell a minimum of 8% of its share in Metsa-Botnia to its largest shareholder Metsaliitto as the core of the restructuring plan because this should have the most certain outcome and provide the company with immediate liquidity.

The negative outlook reflects the degree of uncertainties with regard to timely asset disposals and the successful implementation of further efficiency improvements while relying on third-party funding, the agency said.

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