Kruger to curtail production at two Quebec mills

Reported by - Financial Mirror –
The global paper and forest product industry's six-year-long decline in credit quality has continued in 2007,
says Moody's Investors Service in an industry update. During the year, industry participants have faced tighter liquidity conditions, a worsening slowdown in US housing construction, and, for producers in Canada, Brazil, and Chile, the negative effects of a strengthening in their national currencies.
Overall, Moody's expects the slide in credit quality to continue, particularly for North American and European based companies.
Positive rating pressure, however, is expected for the market pulp and packaging segments as prices remain strong.