S&P rates Boise notes B+

Standard & Poor's said it assigned its B+ issue rating to Boise Cascade, LLC's proposed $250 million senior unsecured notes due 2020. The 4 recovery rating indicates an expectation for average recovery in the event of default.

At the same time, the agency said it affirmed its B+ corporate credit rating on the company. The outlook is stable.

At the same time, the agency said it revised the recovery rating on Boise Cascade's B+ subordinate notes to 4 from 3, indicating an expectation for average recovery in the event of a default.

"The ratings on Boise Cascade reflect our view of the wood products company's weak business risk profile and its aggressive financial risk profile," said S&P credit analyst James Fielding in a news release.

"Weaknesses include exposure to highly volatile new home construction and negligible EBITDA and funds from operations as the housing sector bounced along the bottom of an historic downturn in recent years."

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