Moody's: Reynolds loans Ba3

Moody's Investors Service said it assigned definitive Ba3 ratings to the $2.33 billion senior secured term loan E due 2018 and €250 million senior secured euro term loan due 2018 issued by Reynolds Group Holdings Ltd. and some of its subsidiaries.

The outlook is negative.

The ratings on its existing debt issues did not change, but the loss-given-default rates did change slightly. The agency lifted Reynolds Group's senior secured bank credit facilities and Reynolds Group Issuer Inc.'s senior secured bonds to LGD2, 24% from LGD2, 28% and lowered Pactiv Corp.'s senior bonds to LGD6, 93% from LGD6, 92%.

The new term loans were issued to further extend the group's maturity profile by refinancing about $2.65 billion of existing senior secured term loans due in 2015 to 2016 and to reduce the group's interest costs, Moody's said.

The negative outlook continues to reflect the company's stretched financial metrics based on a pro forma assessment of the Pactiv acquisition, which closed in November, the agency said, and the related financing.

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