DBRS Assigns Rating of BB (high) to Domtar Corporation’s New Debt Issuance, Stable Trend

DBRS has today assigned a rating of BB (high) and a recovery rating of RR1, with a Stable trend, to Domtar Corporation’s (Domtar or the Company) new debt issuance of $250 million 6.25% senior unsecured notes due September 1, 2042 (the Notes).

The Notes will be unsecured obligations ranking equally with Domtar’s other senior unsecured indebtedness. Proceeds are expected to be used for general corporate purposes. The new debt issuance of $250 million will not have a material impact on Domtar’s credit metrics; moreover, Domtar’s credit metrics will remain above the current rating range and continue to provide support to the current rating.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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

This is an unsolicited credit rating. This credit rating was not initiated at the request of the issuer and did not include participation by the issuer or any related third party.