Moody’s raises outlook for global forest products sector from negative to stable

Moody’s Investors Service has revised its outlook for the global paper, packaging and forest products sector to stable from negative, reflecting stronger earnings supported by operational adjustments across the industry, although demand conditions remain subdued. According to the rating agency, companies in the forest products sector have strengthened their financial performance through cost reductions, restructuring programmes and the restart of previously idled production capacity. These measures have helped stabilise profitability after a weaker period for the industry. Moody’s said the improved outlook reflects the sector’s ability to adjust production and manage costs during the downturn ...