S&P: Wausau Paper view positive

Standard & Poor's said it it affirmed both its B- corporate credit rating on Wausau Paper Corp. and its B issue-level rating on the company's secured term loan.

The recovery rating on the term loan is 2, indicating an expectation for substantial recovery (70% to 90%; low end of the range) to creditors in the event of payment default.

At the same time, the agency revised the outlook to positive from stable.

S&P said the ratings affirmation and outlook revision reflect its expectation that the company's credit measures will continue to improve due to profitability enhancements and growing sales volume. Specifically, the agency forecasts the company's debt to EBITDA to fall closer to 4 times by the end of fiscal 2015 and below 4 times thereafter.

"The positive outlook reflects our expectation that the company will continue to enhance profitability and improve its leverage profile such that adjusted debt to EBITDA falls to the low-4x area for fiscal 2015 and below 4x thereafter," S&P credit analyst Christopher Andrews said in a news release.

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