S&P cuts Refresco, notes

Standard & Poor's said it lowered the long-term corporate credit rating on Refresco Group BV to B+ from BB-. The outlook is negative.

At the same time, the agency said it lowered its issue rating on Refresco's €660 million senior secured notes due 2018 to B+ from BB-. The recovery rating on this instrument remains unchanged at 4.

The agency said the rating action reflects its opinion that Refresco will not be able to restore its ratio of adjusted debt to EBITDA to 4.5x by year-end 2012. As consumer demand in Europe remains subdued and raw material prices remain high, the agency said it believes that Refresco's performance will continue to be held back in 2013 despite higher selling prices.

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