In addition, the company faces significant debt maturities and the maturity of its revolving credit facility within the next year if it cannot repay or refinance its $1 billion of second-lien notes by December 2011.įor the remainder of 2011, higher anticipated average selling prices and a seasonal increase in demand for coated papers are expected to lead to an improvement in operating performance when compared with the first half of 2011. Based on our lowered 2011 EBITDA expectations and the likelihood of no additional material assets sales over the upcoming months, we believe NewPage could be challenged to meet its fixed charges, including over $160 million of cash interest expense, during the remainder of 2011. "The rating actions follow NewPage's recently announced weaker-than-expected operating results for the quarter ended June 30, 2011, and the decision to hold off on its previously announced asset sales," said Standard & Poor's credit analyst Tobias Crabtree. We subsequently placed all ratings on NewPage on CreditWatch with negative implications. (For the complete recovery analysis, see Standard & Poor's recovery report on NewPage to be published on RatingsDirect following this release.) The recovery rating remains '6', indicating our expectation that lenders can expect negligible (0% to 10%) recovery in the event of a payment default. We also lowered the issue-level rating on the company's second-lien notes and senior subordinated notes to 'CC' from 'CCC-'. The recovery rating remains '4', indicating our expectation that lenders can expect average (30% to 50%) recovery in the event of a payment default. to 'CCC' from 'CCC+'.Īt the same time, we lowered the issue-level rating on the company's first-lien notes to 'CCC' from 'CCC+'. Standard & Poor's Ratings Services said today it lowered its corporate credit rating on Miamisburg, Ohio-based NewPage Corp. * We placed the ratings on CreditWatch negative to reflect our increased concerns about the company's ability to service its capital structure during the remainder of 2011. We lowered the issue rating on the second-lien and subordinated notes to 'CC'. * We have lowered the corporate credit rating and first-lien notes rating to 'CCC'. has constrained near-term liquidity after the company posted weaker-than-expected second-quarter results and decided to hold off on previously announced asset sales. * U.S.-based paper manufacturer New Page Corp. Ratings Lowered On Constrained Near-Term Liquidity And Placed On Watch Negative The original story and headline begin below.
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