Norwegian newsprint and magazine paper producer Norske Skog has had its credit ratings cut to "junk" by agency Standard & Poor's. It is the tenth European company to have been downgraded to speculative grade by S&P this year - up from seven for the whole of 2005.

S&P cut the rating by one notch from investment grade at BBB- to BB+ as a result of its failure to reduce net debt and strengthen its operating structure.