Moody’s upgrades Berry Plastics

Moody's Investors Service said it upgraded the corporate family rating of Berry Plastics Group, Inc. to B1 from B2 and probability of default rating to B1-PD from B2-PD.

The agency also upgraded Berry’s first-lien senior secured term loans due 2020 and 2021 to Ba3/LGD3 from B1/LGD3 and second priority senior secured notes due 2021 and 2022 to B3/LGD 5 from Caa1/LGD 5.

The speculative grade liquidity rating was affirmed at SGL-2.

The outlook remains stable.

Moody’s said the upgrade of the corporate family rating reflects the proforma benefits from the recent restructuring and acquisitions.

The upgrade also reflects Berry's pledge to direct free cash flow to debt reduction and accretive acquisitions. While end markets are anticipated to remain sluggish and product price increases may further dampen demand, Berry's credit metrics are expected to improve further and remain within the B1 rating category over the horizon, the agency said.

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