S&P: M-real, Sequana unchanged

Standard & Poor's said its ratings on M-real Corp. (B/negative/B) and Sequana Capital (B) are unaffected by the paper-merchant transaction involving both companies.

According to the agency, Sequana's 100% subsidiary Antalis has agreed to acquire M-real's MAP paper-merchant operations for €382 million, pending regulatory approval.

In the case of M-real, the assumed debt reduction will be balanced by a loss of cash generation of a similar magnitude, the agency said.

Furthermore, S&P noted that the company's improved liquidity position resulting from greater head-room in respect of critical covenants will have no rating impact at this stage.

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