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Article: Fitch Affirms Plum Creek's Ratings at 'BBB-'; Outlook to Negative.
- Article from:
- Business Wire
- Article date:
- November 4, 2008
CopyrightCOPYRIGHT 2008 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CHICAGO -- Fitch Ratings has affirmed Plum Creek Timber Company's (PCL) ratings as follows:
--Issuer Default rating at 'BBB-';
--Senior unsecured bond at 'BBB-';
--Bank revolver and term loans at 'BBB-'.
The ratings have been assigned a Negative Outlook as existing high leverage is not expected to improve, while business conditions are expected to weaken.
Increasing leverage, the product of stock repurchases and dividends, timberland acquisitions and a steady but not growing string of operating profits, has been increasing the leverage on PCL's timberlands. Net debt/EBITDA has been rising, to 4.6 times (x) at the close of the ...