MOODY'S PLACES A2 LONG TERM AND PRIME-1 SHORT TERM DEBT RATINGS OF WEYERHAEUSER AND SUBSIDIARIES UNDER REVIEW FOR POSSIBLE DOWNGRADE
Moody's Investors Service placed the debt ratings of Weyerhaeuser Company and Weyerhaeuser Real Estate Company on review for possible downgrade. The rating actions reflect concern regrading the company's future debt protectoin measurements following the annoucement of its intention to repurchase up to 12 million shares of common stock over the next several months.
Ratings placed under review are:
Senior unsecured notes, debentures, and revenue bonds; A2
Medium term notes; A2
Short term ratings for commercial paper; Prime-1 and VMIG-1
Senior unsecured shelf registration; (P)A2
Weyerhaeuser Real Estate Company:
Short term ratings for commercial paper; Prime-1
MacMillan Bloedel Inc;
Senior unsecured notes, debentures, and revenue bonds; A2
In announcing the ratings review, Moody's noted that the existing ratings had incorporated an assumption that Weyerhaeuser would take action during the current industry upcycle to strengthen its ballance sheet and better position the company to withstand future cyclical declines in the forest products industry. The ratings review will assess the company's capitalization strategy going forward and longer term plans to improve financial performance during all product pricing scenarios.
Weyerhaeuser, headquartered in Federal Way, Washington, is one of the largest paper and forest products companies in the world. The company has significant positions in market pulp, white paper, containerboard, and wood products. Weyerhaeuser has one of the most valuable timberland holdings in the United States and has cutting rights in Canada.
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