S&P affirms Impress

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Impress Holdings BV and removed the ratings from CreditWatch, where they were placed with positive implications on Nov. 2 based on the group's stated intention to use a portion of the proceeds from its planned initial public offering to repay high-cost debt.

The outlook is stable.

The agency said it now believes the planned and subsequently delayed IPO is unlikely to occur in the near term because of unfavorable market conditions.

The ratings on Impress are constrained by the group's highly leveraged financial risk profile and by its exposure to inflationary cost pressures and meaningful competition, particularly from smaller, regional players in fairly mature markets, S&P said.

These risks are reduced by the company's leading European market positions in aluminum- and steel-based packaging for food products and in decorative and protective finishes, by stable revenue streams from relatively recession-resistant markets and by longstanding relationships with key customers, the agency added.

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