S&P rates Reynolds loans BB

Standard & Poor's said it assigned a BB senior secured debt rating and 1 recovery rating to Reynolds Group Holdings Ltd.'s proposed $2.325 billion U.S. term loan and €250 million European term loan, both due 2018.

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

All of its other ratings, including its B+ corporate credit rating and negative outlook, remain unchanged.

The proceeds will be used to repay certain existing senior secured term loans and transaction fees and expenses. This transaction, together with a recently rated offering of $2 billion of senior secured and unsecured notes, lengthens debt maturities, S&P said.

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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