RYAM's SGL-2 rating reflects good liquidity with about $250 million of liquidity sources to cover about $16 million of current debt maturities. RYAM had $83 million of cash (at September 30, 2020) and is expected to have about $130 million of availability under the company's new $200 million ABL facility that matures in November 2025. We expect that the company will generate about $40 million of free cash flow in 2021. The company is no longer subject to financial covenants, and we do not expect that the availability covenant in the new ABL facility will be triggered over the next four quarters. However, all of the company's assets are encumbered, and we expect that any asset sale proceeds would be used to reduce debt.

The stable outlook reflects Moody's expectation that RYAM will maintain good liquidity as its leverage trends down toward 6x in 2022, through debt reduction from the amortization of secured project debt as EBITDA increases from operational improvements and slightly higher pulp prices.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

RYAM's rating could be downgraded if:

** the company's liquidity profile deteriorates;

** the company fails to strengthen its operating performance, or

** adjusted Debt/EBITDA was expected to remain at or above 7x (10x LTM September 2020, expected to decline to 6.5x in 2021).

RYAM's rating could be upgraded if:

** liquidity improves, including the ability to generate meaningful positive free cash flow;

** sustaining adjusted Debt/EBITDA is below 5.5x (10x LTM September 2020, expected to decline to 6.5x in 2021) and

** EBITDA/Interest is around 1.5x (1.6x LTM September 2020).

The principal methodology used in these ratings was Paper and Forest Products Industry published in October 2018 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1105007. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Rayonier A.M. Products Inc. (RYAM), headquartered in Jacksonville, Florida, is a leading global producer of specialty cellulose (SC) pulp, which is used as a raw material to manufacture a diverse array of consumer products, such as cigarette filters, LCD screens, coatings and plastics films. RYAM also produces commodity pulp, lumber, consumer paper packaging and newsprint, with revenue of about $1.7 billion (last twelve months September 2020).

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Ed Sustar Senior Vice President Corporate Finance Group Moody's Canada Inc. 70 York Street Suite 1400 Toronto, ON M5J 1S9 Canada JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Donald S. Carter, CFA MD - Corporate Finance Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Canada Inc. 70 York Street Suite 1400 Toronto, ON M5J 1S9 Canada JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653

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