The company is on track to start fabric production as it expands into Shelby, North Carolina, with the paper machine getting closer to its full run-rate goals. While the company expects to continue studying the optimization of its pulp facility at the Lewiston, Idaho mill, it now expects that the pulp optimization project will not bring future financial benefits, as previously anticipated. For more regulatory information on each credit rating, see the Credit Ratings tab of the issuer/entity page on www.moodys.com. The stable outlook reflects Moody`s expectation that Clearwater will maintain good liquidity, with its debt level decreasing to 4x in 2020, thanks to a reduction in debt through improved free cash flow, with EBITDA rising from the full execution of several projects, operational improvements and lower pulp prices. We expect bleached board prices to decline by around 4% in 2020, while average fabric prices will increase by 1%, with average pulp prices in the market decreasing. “We remain focused on two priorities: the health and safety of our employees and the safe operation of our facilities to meet the needs of our customers,” said Arsen S. Kitch, President and Chief Executive Officer. “In April and May, we continued to see strong demand for fabrics, with a delivery increase of almost 30% compared to the 2019 average. As the pace of orders begins to normalize in June, we expect our second-quarter production to exceed expectations and match increased demand, resulting in an improvement in the overall cost structure.

In addition, our cartonboard business is expected to remain stable in the second quarter, with strength in our core market segments offsetting recessive effects,” concluded Kitch. We remain focused on two priorities: the health and safety of our employees and the safe operation of our facilities to meet the needs of our customers,” said Arsen Kitch, President and CEO. “In the second quarter, due to increased fabric demand and production, stable cardboard performance and lower input costs, we achieved record quarterly EBITDA, which led to significant free cash flow used to reduce our net debt.” For more information about Clearwater Paper, please visit our website at www.clearwaterpaper.com. MJKK or MSFJ (if any) disclose: that most bond issuers (including corporate and joint venture bonds, bonds, bonds and commercial paper) and preferred shares valued by MJKK or MSFJ (depending on their applicability) have agreed, prior to assigning a credit rating, to pay fees to MJKK or MSFJ (depending on their applicability) for the credit ratings and services it has provided In. 000 to about JPY250,000,000. The Company`s new priority unsecured debt, rated at $275 million, is one notch lower than the CFR, reflecting the bondholders` subordinated position relative to the company`s $250 million asset-based revolving credit facility and the $239 million secured temporary loan, based on Moody`s Loss given Default methodology. The global Scale Credit Rating for this rating rating was issued by a subsidiary of Moody`s outside the EU and is approved by Moody`s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Article 4(3) of Regulation (EC) No 1060/2009 on credit rating agencies. For more information on the EU approval status and the Moody`s office that issued the credit rating, see www.moodys.com. The regulatory information contained in this press release applies to the credit rating and, where applicable, the associated rating outlook or rating assessment.

Moody`s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis are available under www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569. . . .