S&P: Avery Dennison view negative

Standard & Poor's said it revised the outlook on Avery Dennison Corp. to negative from stable and affirmed the BBB+ long-term and A-2 short-term corporate credit ratings.

The outlook revision reflects significant inflationary cost pressures and soft market conditions, which could make it more difficult for Avery to generate sufficient discretionary cash flow to meaningfully reduce debt, according to S&P.

Ratings reflect the company's leading market positions, established brands, broad geographic diversity and operating excellence, the agency said.

The company's financial profile remains stretched following the Paxar acquisition, which doubled its debt, S&P noted.

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