S&P revises Norske Skog's ratings outlook to stable from negative on improved liquidity position

LOS ANGELES , March 9, 2012 () – Standard & Poor’s said Friday that it had revised its ratings outlook on Norske Skogindustrier ASA to stable from negative, while affirming the B- long-term and B short-term corporate credit ratings.

Norske Skog has negotiated its debt covenants and improved its liquidity position. The company had adjusted net debt of an estimated 9 billion krones as of Dec. 31, 2011, according to S&P.

S&Ps Rating Service said in a statement: “We continue to view the group's liquidity profile as less than adequate, albeit improved. The outlook is stable, primarily reflecting our assumption that the group can maintain or improve its liquidity position over the near term, supported by positive free operating cash flow generation.”

The agency noted in its action that Norske Skog showed positive free operating cash flow generation in the fourth quarter. “It also reflects our assumption of improved operating performance in 2012 compared with 2011,” analysts wrote.

The sources for this article were Reuters, London, England, and Standard & Poor’s, New York, New York, both on March 9, 2012.


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