Moody's affirms Glatfelter

Moody's Investors Service said it affirmed P. H. Glatfelter's Ba2 corporate family and senior unsecured debt ratings.

The outlook is stable.

The action follows the company's plan to acquire Concert Industries Corp., Moody's said, and reflects the expectation that the acquisition will not materially change Glatfelter's credit risk profile.

Pro forma debt-to-EBITDA leverage is expected to increase about one-half turn and is estimated to be around 3 times at closing.

Glatfelter's Ba2 corporate family rating reflects the company's leading market position in niche segments of the specialty paper markets, its timberland holdings whose sale proceeds may be used for debt reduction and its limited exposure to commodity products, the agency said.

Offsetting these strengths is the decreasing demand for some of the company's paper products due to electronic substitution and competition from other grades of paper, the company's relatively small size, and the company's exposure to potential contingencies associated with environmental issues, the agency noted.

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