S&P: Anchor Glass on watch

S&P said it placed all of the ratings on Anchor Glass Container Corp. on CreditWatch with negative implications.

The CreditWatch negative placement reflects that the agency will likely lower the company’s corporate credit rating by one or two notches after the completion of its acquisition by CVC Capital Partners and BA Glass BV due to the potential increase in its debt leverage, S&P said.

The CreditWatch placement follows the company’s agreement to be acquired by CVC Capital and BA Glass from KPS Capital Partners for more than $1 billion, the agency said.

The transaction is expected to close in the fourth quarter of 2016, subject to closing conditions, S&P noted.

Information about the proposed financing or capital structure of the deal is not known, but S&P said it expect that the company’s pro forma credit measures will deteriorate such that its financial risk profile assessment will be revised to “highly leveraged.”

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