Kruger Products L.P.: Rating Report

DBRS Limited (DBRS Morningstar) confirmed Kruger Products L.P.’s (KPLP or the Company) Issuer Rating at BB and its Senior Unsecured Notes (the Notes) rating at B (high), both with Stable trends. The recovery rating on the Notes remains RR6. Although the Company’s credit metrics weakened within the BB rating category, DBRS Morningstar confirmed the ratings as it expects sufficient top-line growth over the medium term to absorb the source of recent pressure on earnings. KPLP’s credit risk profile continues to be supported by its strong brands and leading market position in the Canadian tissue products market, stable demand, and significant barriers to entry. The Company’s ratings also continue to reflect intense competition, volatile input costs, and product/market concentration.