S&P: Norbord unchanged

Standard & Poor's said its ratings and outlook on Norbord Inc. (BBB/negative) would be unaffected by Norbord's announcement of a special dividend.

The dividend will be paid from existing cash on hand and will not require additional debt, the agency noted, adding that Norbord has generated very strong cash flow in the past three years and the credit metrics have outperformed the rating category parameters.

Nevertheless, S&P said it expects Norbord's cash generation to decline in 2006 as residential construction in the United States slows down.

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