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Summary: UPM-Kymmene Corp. Sep 11 Product Image

Summary: UPM-Kymmene Corp. Sep 11

  • ID: 1927763
  • September 2011
  • Standard & Poors

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

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