Moody's: IFCO positive

Moody's Investors Service said it changed the outlook of IFCO Systems NV to positive from stable. Moody's also affirmed IFCO's B1 senior implied rating, B2 rated €110 million guaranteed senior secured notes due 2010 and B3 unsecured issuer rating.

Moody's said the outlook change reflects IFCO's progress in improving its top line and operating margins and updating its reusable plastic containers pool over the past 15 months while maintaining its existing credit profile.

There is likely to be further upward pressure on the rating if the company is able to increase its business diversification through the successful expansion of its RPC business in the United States or if it applies its free cash flow after capex toward the absolute reduction of its debt, according to Moody's.

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