S&P rates Reynolds loan BB

Standard & Poor's said it assigned Reynolds Group Holdings Ltd.'s proposed $2.325 billion U.S. term loan and €250 million European term loan due 2018 a BB senior secured debt rating and 1 recovery rating, indicating the expectation of very high (90% to 100%) recovery in the event of a payment default.

All the company's other ratings, including the B+/negative corporate credit rating, remain unchanged, the agency said.

Reynolds plans to use the loan proceeds to repay certain existing senior secured term loans and transaction fees and expenses.

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

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