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Summary: UPM-Kymmene Corp. Sep 11

  • ID: 1927763
  • September 2011
  • Standard & Poors
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Abstract
The ratings on Finland-based forest products producer UPM-Kymmene Corp. reflect our view of its "fair" business risk profile and "significant" financial risk profile. The business risk profile is supported by a cost position and margins that are better than the industry average, high levels of internally generated energy and pulp production, and a diverse portfolio of forest products. These benefits are, however, offset by exposure to the cyclical pulp and paper industry, which faces oversupply, and by a structural decline in demand for graphic paper. UPM-Kymmene's financial risk profile reflects our view of the group's cyclical and weak cash flow generation, and risk of increased leverage from debt-financed acquisitions, mitigated by a currently balanced capital structure and strong liquidity. Higher...

Companies mentioned in this report are: UPM-Kymmene Corp.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk READ MORE >

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UPM-Kymmene Corp.

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Note: Product cover images may vary from those shown