Toronto, May 28, 2013 -- Moody's Investors Service commented that Domtar Corporation (Domtar, Baa3 stable) announcement to acquire privately-held Associated Hygienic Products ("AHP", not rated), the largest manufacturer and supplier of private label infant diapers in the US, is credit positive. The acquisition modestly increases Domtar's scale and diversification, and is consistent with the company's growth strategy of acquiring growing businesses to offset the company's declining paper-based operations. Domtar's Baa3 senior unsecured rating and stable outlook remain unchanged.

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