S&P rates Plastipak notes B+

Standard & Poor's said it assigned its B+ issue-level rating and 5 recovery rating to Plastipak Holdings Inc.'s proposed $300 million senior unsecured notes due 2021. The 5 recovery rating indicates an expectation for modest (10% to 30%) recovery in the event of a payment default.

At the same time, based on S&P's updated recovery analysis, the agency raised its ratings on the company's existing $225 million senior unsecured notes due 2019 to B+ from B and revised the recovery rating on this debt to 5 from 6, reflecting an expectation for modest (10% to 30%) recovery in the event of a payment default.

The outlook is stable.

S&P said its ratings on Plastipak reflect the agency's assessment of its business profile as "fair" and financial profile as "aggressive."

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