S&P lowers Cascades, rates loan BB+

Standard & Poor's said it lowered its long-term corporate credit rating on Cascades Inc. to BB from BB+.

At the same time, the company's new C$550 million credit facility was assigned a BB+ rating that reflects its superior recovery prospects versus other classes of debt.

The senior unsecured rating was lowered to BB- to reflect the increasing amount of priority obligations, the agency added.

The outlook is negative.

The ratings on Cascades were lowered to reflect the company's improving but weak earnings, aggressive leverage and exposure to cyclical forest product pricing, S&P added.

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