S&P cuts Pacific Lumber to CCC+

Standard & Poor's said it lowered its corporate credit rating on Pacific Lumber Co. to CCC+ from B-. The outlook is negative.

S&P said the rating action reflects the company's continued weak performance and concerns about its very low level of liquidity, which provides only a small cushion in the event of any operating disruptions or other adverse developments.

The ratings on Pacific Lumber reflect its modest-size operations, narrow product mix, industry cyclicality and reliance for logs on Scotia Pacific LLC, its highly leveraged, bankruptcy-remote, special-purpose subsidiary.

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