S&P lowers Frigoglass

Standard & Poor's said it lowered the corporate credit rating on Frigoglass SAIC to B+ from BB-.

The agency also said it lowered the rating to B+ from BB- on the €250 million senior unsecured notes due 2018 issued by holding company Frigoglass Finance BV, S&P said.

The outlook is stable.

The downgrades reflect a view that the company's sales growth and free operating cash flow generation for 2014 will be below the initial base-case scenario, weakening the company's credit metrics, S&P said.

The deterioration in its operating performance since the second half of 2013 is likely to continue in 2014, driven by significantly lower sales volumes from key customers, namely Coca-Cola bottling companies, from which Frigoglass generates more than 40% of its total revenues, as well as adverse foreign-exchange currency movements, the agency said.

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