Kruger Products L.P.: Presale Report

DBRS Limited (DBRS) assigned a provisional Issuer Rating of BB and a provisional Senior Unsecured Notes rating of BB (low) with a Recovery Rating of RR5 to Kruger Products L.P. (KPLP or the Company). All trends are Stable. The ratings are supported by KPLP’s strong brands and market positions in the Canadian tissue products market, efficient production facilities and effective operations; stable tissue products demand; and the significant barriers to entering the tissue products market. The ratings also reflect the Company’s exposure to volatile commodity prices while operating in a highly competitive industry, single product/single-market exposure and the strong bargaining power of major retailers.