S&P: Resolute unaffected

Standard & Poor's said its ratings on Resolute Forest Products, formerly AbitibiBowater Inc., are unaffected by the company's announced takeover bid for Fibrek Inc., a virgin and recycled kraft pulp producer.

The agency said it believes that the acquisition is in line with Resolute's strategy to expand its pulp business to offset the declining newsprint business. According to S&P, the company is expected to fund the proposed acquisition with cash on hand and equity.

While Resolute's liquidity will likely decline, S&P said, the agency expects leverage to remain unaffected.

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