Moody's rates Cascades notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Cascades Inc.'s proposed $250 million senior notes due 2020.

The outlook is stable.

Proceeds will be used to help fund the tender offer of Cascades 7¼% and 6¾% senior notes maturing in 2013.

Cascades' Ba2 corporate family rating reflects the diversity derived from its containerboard, boxboard, specialty packaging and tissue businesses, the relatively stable margins of these products, the improved financial performance of the boxboard segment and the company's vertically integrated operations, the agency said.

Offsetting these strengths are the company's lack of geographic diversification, exposure to the strong Canadian dollar, volatile input costs and the company's tendency to conduct relatively small debt-financed acquisitions, the agency noted.

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