S&P rates Bluegrass Container B+, loan BB-

Standard & Poor's said it assigned its B+ corporate credit rating to Bluegrass Container Co. LLC.

The outlook is stable.

At the same time, S&P said it assigned its BB- senior secured bank loan rating and 1 recovery rating to the company's proposed $150 million first-lien revolving credit facility due in 2012 and $760 million first-lien term loan B due in 2013.

The agency added that the ratings on Bluegrass reflect its highly leveraged capital structure, participation in mature, oversupplied and competitive markets, limited product diversity and substrate substitution risks and the risk of integrating two companies.

The ratings also reflect the company's leading market shares, relatively stable end-market demand and pricing and some ability to pass through cost increases to customers, the agency noted.

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