S&P rates Packaging Corp. notes BBB

Standard & Poor's said it assigned a BBB rating to the proposed $150 million senior unsecured notes due 2018 of Packaging Corp. of America (BBB/stable). The notes will be issued under the company's shelf registration.

Proceeds from the notes will be used to pay the $150 million 4 3/8% senior notes due August 2008.

Ratings reflect the company's competitive cost position in the cyclical containerboard industry, high level of forward integration, flexible fiber and energy capabilities, good customer diversity and moderate financial policies, the agency said.

These factors are partially offset by limited product diversity, mature demand and a moderate size of operations, S&P said.

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