Moody's rates Reynolds loans B1

Moody's Investors Service said it assigned B1 ratings to two proposed senior secured credit facilities and four proposed senior secured term loans of Reynolds Group Holdings Inc.

Additionally, Moody's affirmed the company's B3 corporate family, B3-PD probability of default and all other instrument ratings.

The outlook is stable.

The proceeds from the new facilities will be used to refinance the existing facilities.

Moody's said the B3 corporate family rating reflects weak credit metrics, concentration of sales within certain segments and acquisitiveness/financial aggressiveness. The rating also reflects the competitive and fragmented market and the company's mixed contract and cost pass-through position.

Strengths in the company's profile include its strong brands and market positions in certain segments, scale and high percentage of blue-chip customers, Moody's said. There are high switching costs for customers in certain segments as well as a history of innovation.

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