DBRS Rates Domtar Senior Unsecured Notes at BB (low)

DBRS has today assigned a rating of BB (low), with a Stable trend, and a recovery rating of RR5 to the pending senior unsecured notes issuance of Domtar Corporation (Domtar or the Company). The notes will rank equally with all of the Company’s other unsecured and unsubordinated obligations.

The Company intends to use the net proceeds from the $250 million offering to fund any portion of the purchase price of the 7.875% notes due 2011 tendered and accepted by the Company for purchase pursuant to its previously announced tender offer (a tender offer for up to $250 million of its outstanding 7.875% notes due 2011) not funded with cash on hand and, to the extent there are remaining proceeds, for general corporate purposes. There will be no material net impact on Domtar’s leverage after the repayment.

Note:
All figures are in US dollars unless otherwise noted.

The applicable methodologies are Rating the Forest Products Industry and Rating Leveraged Finance, which can be found on our website under Methodologies.

This is a Corporate rating.