The rating on Rayonier Inc. reflects the company's satisfactory business risk profile and intermediate financial risk profile supported by its diverse portfolio of value-added products, good geographic diversity, valuable timberland holdings, solid free cash flow levels, and management's commitment to maintaining a moderate financial policy. The rating also reflects cyclical end markets, some exposure to volatile commodity prices, and a high dividend payout ratio. Rayonier manages timberland (the company owns, leases, or manages about 2.6 million acres); sells real estate; produces high-value specialty cellulose fibers; and trades logs. Standard & Poor's Ratings Services believes the company's earnings and operating cash flow should remain more stable than those of most other forest products companies because of its balance of pulp and...
Companies mentioned in this report are: Rayonier Inc.
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