PORT TOWNSEND — Port Townsend Paper Corp. executives are looking for a new auditor after KPMG LLP declined to be reappointed as its independent auditing firm.
KPMG is concerned about matters related to Port Townsend Paper’s internal controls and operation, a Standard & Poor’s Rating Services report states.
The kraft pulp and paper mill, Jefferson County’s largest private employer, employs 320 people just south of Port Townsend, and an additional 430 at mills in British Columbia.
Standard & Poors, the world’s foremost provider of independent credit ratings, indices, risk evaluation, investment research and valuations, reports that Port Townsend Paper’s B-minus credit rating remains unchanged, following the company’s disclosure.
“We’re not GM and were not GE,” Tim Leybold, Port Townsend Paper’s new vice president and chief financial officer, said Tuesday.
“We’re a small company and (the rating) is consistent with a company of our size.”
According to Standard & Poors, a higher “B” rating indicates the company has “adverse business, financial, and economic conditions to meet its financial commitments” but still has “the capacity to meet its financial commitments.”
November outlook revision
Standard & Poor’s Rating Services on Nov. 30 reported that it revised its outlook on Port Townsend Paper to negative from stable.
“The outlook revision is based on a combination of factors, including Standard & Poor’s expectation of a weaker-than-expected credit profile over the intermediate term and tight liquidity,” said Standard & Poor’s credit analyst Dominick D’Ascoli.
In addition, D’Ascoli said potential minor accounting restatements and the recent departure of the company’s chief financial officer raised concerns.
