S&P cuts Weyerhaeuser

S&P said it downgraded its rating on Weyerhaeuser Co. and its issue-level rating on the company’s senior unsecured debt to BBB- from BBB.

“EBITDA will fall over the next 12-24 months due to a coronavirus-driven construction slowdown and reduced homebuyer activity, following a year of weak lumber prices. After already-reduced 2019 results (compared to 2018) due to lower lumber and panel prices, Weyerhaeuser’s operating cash flow and earnings are expected to decline further in 2020, resulting in adjusted debt-to-EBITDA in excess of 5x over the next 12 months,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.