S&P: Neenah on positive watch

Standard & Poor's said it placed its ratings, including the B+ corporate credit rating, on Neenah Paper Inc. on Creditwatch with positive implications.

"The Creditwatch placement reflects its view that Neenah's financial risk profile may be more consistent with a higher rating because of the company's plan to reduce debt with proceeds from the sale of the timberlands," said S&P credit analyst Andy Sookram.

Following about $45 million of debt reduction in 2009 from generated cash flows, Neenah's total adjusted debt should be about $340 million after the sale is completed, S&P added.

As a result, the agency said it believe debt to 2009 EBITDA will improve to around 4.5x from about 5.5x at Dec. 31.

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