S&P downgrades Stora Enso

Standard & Poor's said it lowered the long-term corporate credit rating on Stora Enso Oyj to BB from BB+ and removed the rating from CreditWatch, where it was placed with negative implications on April 24. The short-term corporate credit rating and the Nordic scale K-4 rating were affirmed.

The outlook is negative.

"The downgrade reflects our view that Stora Enso's business and financial risk has increased due to the challenging market conditions facing the forest product sector in general, and follows increasing financial underperformance in relation to the ratings targets over the past two quarters," S&P analyst Andreas Zsiga said in a statement.

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