S&P: Reynolds notes BB, B-

Standard & Poor's said it assigned to Reynolds Group Holdings Ltd. a BB senior secured debt rating and recovery rating of 1 on the $1 billion of senior secured notes due 2021, to be issued jointly by Reynolds Group Issuer Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) SA.

These ratings indicate 90% to 100% recovery in a default.

The agency also said it assigned a B- senior unsecured debt rating and a recovery rating of 6 to the proposed offering of $1 billion of senior unsecured notes due 2021 by the same issuers.

These ratings indicate 0% to 10% recovery in a default.

S&P also said it lowered the senior unsecured debt ratings on all the company's existing senior unsecured debt to B- from B and revised the recovery rating on this debt to 6 from 5.

All of the other ratings on Reynolds, including the B+ corporate credit rating, remain unchanged with a negative outlook.

The proceeds will be used to repay certain senior secured bank debt, S&P said, and the transaction lengthens debt maturities somewhat.

The ratings reflect its strong business risk profile as one of the world's premier packaging companies, a highly leveraged financial risk profile and aggressive financial policies, the agency said.

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