DBRS Confirms TimberWest at BBB with a Stable Trend

DBRS has today confirmed the Issuer Rating of TimberWest Forest Corp. (TimberWest or the Company) at BBB with a Stable trend, following the Company’s announcement of the completion of the plan of arrangement under which British Columbia Investment Management Corporation (bcIMC) and the Public Sector Pension Investment Board (PSP; rated AAA by DBRS) indirectly acquired all of TimberWest’s outstanding stapled units (the Transaction). The Company was delisted from the Toronto Stock Exchange following the close of trading on June 29, 2011. With this rating action, TimberWest has been removed from Under Review with Developing Implications, where it was placed on April 11, 2011.

Following the completion of the Transaction, the Company also plans to redeem all outstanding 9% convertible debentures (the Debentures) at $188.53 per $100 in principal amount and accrued and unpaid interest.

The confirmation of the Issuer Rating reflects the fact that the Transaction and the Debentures redemption have no meaningful impact on the Company’s business profile and financial risk profile.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Forest Products Industry, which can be found on our website under Methodologies.