S&P rates Avery Dennison notes BBB

Standard & Poor's said it assigned a BBB senior unsecured debt rating to Avery Dennison Corp.'s $250 million senior notes due 2020. The company is drawing the notes from an existing shelf registration and will use proceeds to repay an outstanding term loan. The agency also said it affirmed its BBB long-term and A-2 short-term corporate credit ratings.

The outlook remains stable.

The ratings reflect the company's strong business risk profile and significant financial risk profile, the agency said. The company has leading market positions in pressure-sensitive materials, retail tag and labeling systems and office products, S&P said.

But, the company's top line has been pressured by the downturn in the retail sector affecting both apparel tag and label and office products sales, the agency said, and these factors have more than offset continuing growth in emerging markets.

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