S&P: JSG unaffected

Standard & Poor's said its ratings and outlook on JSG Packaging Ltd. (BB-/stable/--), the top holding company in the Jefferson Smurfit group and related entities are unaffected by the group's announcement that it is to sell its Munksjö specialty paper business for about €450 million.

S&P said this follows the group's earlier announcement that it intends to sell its Munksjö tissue business to Svenska Cellulosa Aktiebolaget SCA (A-/stable/A-2) for disposal proceeds of about €28 million. The disposal proceeds are expected to be used for debt reduction.

Although the transactions will immediately strengthen JSG's balance sheet, S&P said the positive affect on the group's cash flow credit measures is to a large extent offset by the loss of cash flows from the two businesses.

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