On Oct. 28, 2003, Standard & Poor's Ratings Services revised the outlook on diversified pulp, paper, and wood products producer Tembec Inc. to negative from stable. At the same time, all ratings on the company, including the 'BB' long-term corporate credit rating, were affirmed. The revision stems from concerns that Tembec will be unable to significantly improve credit ratios from very weak current levels in the near term, and the company could be challenged to average levels commensurate with the ratings category through the cycle. Although the economy has shown signs of improving, there are doubts about the legitimacy of the recovery and the extent and speed that it will translate into stronger pulp and paper consumption in 2004. Furthermore,...
Companies mentioned in this report are: Tembec Inc.,Domtar Inc.
Action: Outlook Revised
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Product Type: Research Update
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