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Article: Fitch Affirms Plum Creek's Ratings at 'BBB-'; Maintains Negative Outlook.
- Article from:
- Business Wire
- Article date:
- August 24, 2009
CopyrightCOPYRIGHT 2009 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 Rating Outlook is Negative.
Leverage is projected to increase through the end of this year, on its way to approaching 5.0 times (x) net debt/EBITDA as earnings soften from lower log harvests and sawtimber prices, fewer real estate sales, and with no meaningful profit contributions from panel and lumber operations. These conditions are expected to partially reverse in 2010 along with housing starts.
With a current ...