S&P lifts Stora Enso to stable

Standard & Poor's said it revised the outlook on Stora Enso Oyj to stable from negative.

The company's BB long-term and B short-term corporate credit ratings and the K-4 Nordic regional scale rating were affirmed.

The agency said it revised the outlook to stable because it no longer thinks there is a one-in-three probability that it will downgrade Stora Enso in the next 12 to 18 months.

S&P said it now expects that Stora Enso will improve its credit metrics on the back of strengthened operational performance and a revised investment plan for construction of its integrated paperboard and pulp mill in China.

The ratings consider Stora Enso's strong liquidity as a partial offset to the recent weakening in credit metrics, the agency said.

The ratings further incorporate the company's fair business risk profile and are constrained by its still-significant exposure to the impaired European paper markets, S&P said.

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