Moody's upgrades Ainsworth, bonds

Moody's Investors Service said it upgraded Ainsworth Lumber Co. Ltd.'s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD, senior secured bond rating to B1 from B2 and speculative grade liquidity rating to SGL-2 from SGL-3.

The outlook is stable.

The upgrade reflects expectations of continued strong financial performance as the company runs its current low-cost mills near capacity and ramps up production at a fourth mill (High Level, Alberta) as the U.S. housing market returns to trend levels over the next 2-3 years.

The action concludes a review for possible upgrade that was initiated on Sept. 5, 2013 following Louisiana-Pacific Corp.'s announcement that it planned to acquire Ainsworth. The acquisition was terminated when the companies determined that the regulatory approvals could not be obtained without divestitures significantly beyond those contemplated in the arrangement agreement.

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