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Industry Report Card: U.S. Forest Products: Paper, Paperboard Ratings Will Continue Steady, But Housing Slowdown Will Pare Wood Product Earnings Sep 06

  • ID: 2083196
  • September 2006
  • Region: United States
  • Standard & Poors
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  • Altivity Packaging LLC
  • Caraustar Industries Inc.
  • Longview Fibre Co.
  • Newark Group Inc. (The)
  • Port Townsend Paper Corp.
  • SP Newsprint Co.
  • MORE

Credit quality in the U.S. forest products sector was relatively steady during the past quarter, recognizing improved paper and paperboard market conditions that have helped stave off some potential negative rating actions. Looking ahead, Standard & Poor's Ratings Services believes the slowdown in new residential construction will likely continue to adversely affect the financial performance of wood products manufacturers for at least the next year or so. In addition, we see a slowing of price increases in paper and paperboard after current increases work their way through earnings. We believe this could cap credit measure improvement, particularly if costs pressure results more than we expect. Of the 36 rated companies in the sector, more than 25% have negative outlooks, so...

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.

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- Chesapeake Corp.
- Georgia-Pacific LLC
- Rayonier Inc.
- International Paper Co.
- Louisiana-Pacific Corp.
- Pacific Lumber Co.
- Packaging Corp. of America
- Potlatch Corp.
- Weyerhaeuser Co.
- Bowater Inc.
- Temple-Inland Inc.
- Pope & Talbot Inc.
- Longview Fibre Co.
- Glatfelter (P.H.) Co.
- Buckeye Technologies Inc.
- Rock-Tenn Co.
- Caraustar Industries Inc.
- Smurfit-Stone Container Corp.
- Plum Creek Timber Co. Inc.
- Port Townsend Paper Corp.
- Appvion Inc.
- MeadWestvaco Corp.
- Graphic Packaging International Inc.
- SP Newsprint Co.
- Blue Ridge Paper Products Inc.
- RLC Industries Co.
- Newark Group Inc. (The)
- Cellu Tissue Holdings Inc.
- Boise Cascade Company
- Neenah Paper Inc.
- Mercer International Inc.
- White Birch Paper Co.
- NewPage Corp.
- Packaging Dynamics Corp.
- Altivity Packaging LLC
- Verso Paper Holdings LLC

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown