DBRS lowers Catalyst

DBRS said it has downgraded the issuer rating of Catalyst Paper Corp. to C from CCC (high).

This action follows the announcement that Catalyst would defer the interest payment of $ 21 million on its 11% senior secured notes due 2016, pending finalization of its strategy regarding its debt structure, the agency said.

At the same time, DBRS added that it downgraded the rating on Catalyst's senior secured debt to CC (low) from B, its recovery rating remaining unchanged at RR2, and the rating on its senior debt to C (low) from CCC (low) with its recovery rating remaining unchanged at RR6.

The agency noted that it has also placed all the above ratings under review with negative implications. The rating action reflects the heightened risk of a potential default.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.