S&P: Berry Plastics view to positive

Standard & Poor's said it revised the outlook on Berry Plastics Corp. to positive from stable.

S&P said it affirmed the B- corporate credit rating, along with the issuer and recovery ratings on Berry's first-lien senior secured debt at B with a recovery rating of 2, indicating 70% to 90% expected recovery in a default.

The company has a CCC rating on Berry's second-lien and subordinated debt and its parent company's senior unsecured debt with recovery ratings of 6, which 0% to 10% expected recovery in a default.

The outlook revision reflects an expectation of improving operating trends supported by stable volumes and manageable raw material costs, S&P said.

The ratings also consider the risks associated with its high debt leverage and growth-via-acquisition strategy, as well as its fair business risk profile, the agency said.

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