S&P: Greif view now positive

S&P said it affirmed its BB corporate credit rating on Greif Inc. and revised the outlook to positive from stable.

At the same time, S&P said it affirmed its BB- issue-level rating on the company's senior unsecured notes. The recovery rating is 5, indicating an expectation for modest (10%-30%; rounded estimate: 20% for U.S. dollar-denominated senior notes and 15% for euro-denominated notes) recovery in a payment default scenario.

“Our positive outlook reflects Greif's improved overall operating performance over the past year and the subsequent favorable impact on its credit measures, with an adjusted debt-to-EBITDA ratio of 2.5x and funds from operations (FFO) to debt of 28.2% for fiscal 2017,” S&P said in a news release.

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