Industry Report Card: Canadian Forest Products Apr 05
Standard & Poors, April 2005
Abstract
Standard & Poor's Ratings Services currently rates 14 Canadian forest products companies. Of these 14, 11 have speculative-grade ratings (seven are in the 'BB' category). The majority of the outlooks are stable, although five companies still have negative outlooks. Many of the companies remain highly leveraged following large, debt-financed acquisitions in the late 1990s and 2000. Standard & Poor's remains concerned that the Canadian producers will not be able to sufficiently de-leverage before the inevitable cyclical downturn, if the Canadian dollar remains strong and they are not refunded a majority of the softwood lumber duties they have paid (The Canadian industry has paid more than C$4 billion in duties since 2002). Although the credit quality of the Canadian companies improved...
Companies mentioned in this report are:
- Canada
- Domtar Inc.
- Norbord Inc.
- West Fraser Timber Co. Ltd.
- Tembec Inc.
- Scott Paper Ltd.
- Ainsworth Lumber Co. Ltd.
- Cascades Inc.
- Abitibi-Consolidated Inc.
- Norampac Inc.
- Millar Western Forest Products Ltd.
- Grant Forest Products Inc.
- TimberWest Forest Corp.
- Catalyst Paper Corp.
- Fraser Papers Inc.
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 exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Canada
- Domtar Inc.
- Norbord Inc.
- West Fraser Timber Co. Ltd.
- Tembec Inc.
- Scott Paper Ltd.
- Ainsworth Lumber Co. Ltd.
- Cascades Inc.
- Abitibi-Consolidated Inc.
- Norampac Inc.
- Millar Western Forest Products Ltd.
- Grant Forest Products Inc.
- TimberWest Forest Corp.
- Catalyst Paper Corp.
- Fraser Papers Inc.
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