S&P cuts NewPage ratings after bankruptcy filing

NEW YORK

Standard & Poor's Ratings Services on Wednesday said that it cut its corporate credit rating on Miamisburg, Ohio-based NewPage Corp. to "D" from "CCC." The ratings agency also cut all issue-level ratings on the company's debt to "D," a below-investment grade rating that signals the possibility of default.

S&P also removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 15.

The moves follow the paper producer's filing for Chapter 11 bankruptcy court protection in a Delaware court earlier in the day. The privately held company said it will restructure and expects to continue operating its U.S. business as usual. It said it has commitments for $600 million in financing led by JPMorgan Chase & Co.

As of June 30, the company had reported debt of $3.4 billion, S&P said. It has about 6,980 employees in the U.S. and Canada.

The company's Canadian subsidiary, NewPage Port Hawkesbury Corp., separately brought proceedings before the Supreme Court of Nova Scotia under the Companies' Creditors Arrangement Act of Canada.