S&P ups SP Newsprint

Standard & Poor's said it raised its corporate credit rating on SP Newsprint Co. to BB- from B+.

At the same time, the agency said it raised the company's senior secured bank loan rating to BB- from B+.

The outlook is stable.

S&P noted that the corporate credit rating upgrade reflects the company's meaningful debt reduction over the past two years and earnings improvements that were drive by cost reductions and price increases.

According to the agency, the ratings on SP Newsprint reflect limited product diversity in the highly cyclical commodity newsprint market, a lack of operating diversity and aggressive debt levels, partially offset by the company's low-cost mills and support from equity owners.

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