S&P lifts Stora Enso Oyj unsecured recovery to 3

S&P said it reviewed the recovery and issue-level ratings for Stora Enso Oyj that were considered under criteria observation (UCO) after the agency published its revised recovery ratings criteria Dec. 7.

With the criteria review complete, S&P said it revised the recovery ratings on the unsecured debt upward to 3 from 4 based on improved recovery prospects. The 3 recovery ratings indicate 50% to 70% expected default recovery, the agency said.

These actions stem solely from the application of the revised recovery criteria and do not reflect any change in the assessment of the corporate credit ratings for issuers of the affected debt issues, S&P said.

The BB issue ratings on the company’s debt are unchanged.

The ratings reflect the company’s leading market positions, diversified asset base, broad product and geographic diversity, the agency said, and significant vertical integration.

The ratings also consider the favorable insolvency regime in Finland, S&P said.

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