S&P: Weyerhaeuser outlook negative

Standard & Poor's said it revised the outlook on Weyerhaeuser Co. to negative from stable and affirmed its BBB- corporate credit rating.

The affirmation reflects the view that Weyerhaeuser's planned conversion to a real estate investment trust should not materially harm the company's satisfactory business risk or intermediate financial risk profiles, according to the agency.

Ratings also incorporate the expectation that Weyerhaeuser intends to execute the conversion with minimal impact on its liquidity and credit quality and that it will establish the post-REIT dividend at an amount that should be sustainable over a cycle, the agency said.

"Nevertheless, the rating outlook revision to negative incorporates some uncertainty regarding the ultimate plan as it depends on certain tax rulings and tax rate policies that may preclude the company from carrying out the conversion in a manner that we believe supports its current rating," S&P analyst Pamela Rice said in a statement.

© 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.