Moody's lowers Home Products notes to Caa3

Moody's Investors Service said it lowered Home Products International, Inc.'s corporate family rating to Caa1 from B2 and its senior subordinated notes rating to Caa3 from Caa2.

Moody's said the rating action was prompted by Home Products' weak credit metrics for the ratings category, stemming from the continued negative impact of escalated plastic resin costs on the company's earnings and cash flows, and the company's inability to fully offset these with price increases, as well as the company's limited financial flexibility.

The outlook remains negative, reflecting Moody's concern that elevated material costs and challenging market conditions will continue to pressure Home Products' operating performance, resulting in the likelihood for continued weak credit metrics.

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