S&P lifts Boise Paper

Standard & Poor's said it raised its ratings, including the corporate credit rating, on Boise Paper Holdings LLC to BB from BB-.

The outlook is stable.

The agency said the upgrade reflects the sooner-than-expected progress that Boise Paper has achieved in strengthening its financial risk profile through better earnings and cash flow and the prospects, in S&P's view, for continuing modest improvement over the next year. The agency also expects that Boise Paper's credit measures will continue to improve modestly as it reduces debt through greater term loan amortization.

The ratings on Boise Paper reflect the company's fair business risk profile, which encompasses its growing value-added product mix, relatively steady operating results and moderate product diversity, S&P said.

Somewhat tempering these factors are the company's position as a moderate-size paper and packaging producer in a cyclical and competitive industry and some customer concentration risk, in the agency's view.

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