S&P downgrades Rexam

Standard & Poor's said it lowered the long-term corporate credit and senior unsecured debt ratings on Rexam plc to BBB- from BBB. The A-3 short-term rating was affirmed.

The outlook is stable.

"The downgrade reflects Rexam's continued weak financial performance for the previous rating, and the likelihood that it will not materially improve in 2009 in view of the tough market environment," S&P analyst Alf Stenqvist said in a statement.

Ratings reflect the company's leading positions in the relatively recession-resistant, albeit mature and competitive, U.S. and European consumer packaging industries, and management's track record of successfully integrating acquired businesses, the agency said.

Constraints include Rexam's product concentration, exposure to fluctuations in raw material prices and high degree of customer concentration, S&P noted.

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