S&P rates Ball loan BBB-, view to negative

Standard & Poor’s said it revised the outlook on Ball Corp. to negative from stable.

The agency also said it affirmed the company’s BB+ corporate credit rating.

S&P also said it assigned a BBB- rating and 2 recovery rating to the company’s proposed $3 billion revolving credit facility due 2018.

The 2 recovery rating indicates 70% to 90% expected default recovery.

All other existing issue-level ratings and recovery ratings are unchanged.

The company will use the new facility to retire its existing senior secured credit facility and refinance senior unsecured notes due in 2020 and 2021, S&P said.

The facility also is available for general corporate purposes and to support the company’s proposed acquisition of Rexam, which it does not expect to close until first half of 2016, the agency said.

Recovery prospects on the new facility are lower than on the existing credit facility due to the larger facility size and the absence of direct borrowings by foreign subsidiaries that benefit from additional guarantees and collateral, S&P said.

If the acquisition is completed, the combined company should benefit from increased product- and geographic-diversity and various synergies, the agency said.

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