Moody’s Ratings has downgraded Metsä Board Corporation's long term issuer rating to Baa3 from Baa2 and its senior unsecured rating to Baa3 from Baa2. The outlook has been changed to stable from negative.
The downgrade is based on a deteriorating market environment, which has negatively affected Metsä Board’s profitability. Demand for paperboards has weakened due to prolonged low consumer confidence, further pressured by global geopolitical tensions and recent U.S. import tariffs. In addition, there is concern about persistently low utilization rates among European paperboard producers.
Moody’s notes positively that Metsä Board has launched a cost savings and profitability program aimed at improving annual EBITDA by EUR 200 million, and releasing at least EUR 150 million in working capital.
The change in outlook from negative to stable reflects Metsä Board’s solid financial position, which strengthens the company’s ability to operate through challenging market environment.
The downgrade will not have a material impact on Metsä Board’s current financing costs.
METSÄ BOARD CORPORATION