Good geographic and product diversity; Large proportion of value-added products; High barriers to entry for specialty cellulose; Stable earnings and cash flows; Flexibility to accelerate timber harvest and sell timberlands if necessary to raise cash; Tax-efficient corporate structure; and Valuable timberland holdings. Cyclical end markets; Likely continuation of long-term decline in log and wood product prices; Competitive pricing pressures on commodity products; and High dividend payout ratio. The rating on Rayonier Inc. reflects the company's diverse portfolio of value-added products, good geographic diversity, valuable timberland holdings, solid levels of free cash flow, and management's commitment to maintain a moderate financial policy. The rating also reflects cyclical end markets, some exposure to volatile commodity prices, and a high dividend payout ratio....
Companies mentioned in this report are: Rayonier Inc.,Rayonier Forest Resources L.P.
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