qquebec
Super Moderator
S&P cuts Norske Skogindustrier to 'CCC+/C'; on watch neg
Nov 21 -
Overview
-- Norway-based forest products group Norske Skogindustrier ASA (Norske Skog) has bought back bonds at significantly below par prices throughout 2012, and we think it likely that it will continue doing so in the near term.
-- Although the individual transactions were small, the cumulative amount of debt repurchased is close to a level we regard as substantial, which would lead us to view the buybacks as a debt restructuring.
-- We are lowering our long-term rating on Norske Skog to 'CCC+' from 'B-' and placing it on CreditWatch negative.
-- The CreditWatch placement reflects the possibility of a downgrade to 'SD' (Selective Default) if the bond repurchases continue at below par prices.
Rating Action
On Nov. 21, 2012, Standard & Poor's Ratings Services lowered to 'CCC+/C' from 'B-/B' its long- and short-term corporate credit ratings on Norway-based forest products group Norske Skogindustrier ASA (Norske Skog). At the same time, we placed the ratings on CreditWatch with negative implications.
We also lowered our issue ratings on Norske Skog's senior unsecured debt to 'CCC+' from 'B-' and placed them on CreditWatch negative.
Porca vacca
