Moody's rates Berry Plastics notes B3

Moody's Investors Service said it assigned a rating of B3 to Berry Plastics Corp.'s proposed $90 million (gross proceeds) add-on to existing senior subordinated notes due 2012 and assigned a B1 rating to the company's proposed $50 million add-on to existing senior secured credit facilities.

The company also confirmed its B3 rating of $250 million of 10.75% senior subordinated notes due 2012, its B1 rating of an existing $427 million senior secured credit facility and $100 million revolver, both maturing 2008, and a $327 million term loan maturing 2010.

The outlook is stable.

The ratings reflect continued susceptibility of margins to fluctuations in resin costs and the related difficulty passing higher costs to increasingly more powerful customers. The ratings also acknowledge that Berry has performed relatively well throughout a challenging business environment and that Berry's pre-acquisition financial profile was within Moody's expectations.

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