West Fraser Timber Co. Ltd.: Rating Report

On July 4, 2019, DBRS Limited (DBRS) confirmed both ratings on West Fraser Timber Co. Ltd. (West Fraser or the Company) at BBB (low). Both trends are Positive. The confirmations reflect DBRS’s expectation that the current softness in the North American lumber market will not permanently affect West Fraser. Although 2019 EBITDA and cash flow are expected to be much lower than in 2018, the Company’s credit metrics remain strong for the rating category. West Fraser’s investment-grade rating continues to be supported by its ongoing commitment to a conservative financial policy; its low-cost operations, which have enabled positive cash flow generation even during market downturns; and its access to sufficient high-quality wood fibre.