S&P puts Reynolds on watch

Standard & Poor's said that it placed the ratings on Reynolds Group Holdings Ltd., including the B+ corporate credit rating, on CreditWatch with negative implications.

The action follows Reynolds' announcement that it has negotiated definitive terms and conditions to acquire Graham Packaging Co. LP for $25 per share in cash, or a$4.5 billion including assumed net debt.

The CreditWatch placement reflects the likelihood that S&P will lower its ratings on Reynolds and its debt issues if it completes its acquisition of Graham as proposed, because of the resulting increase in debt leverage, the agency added.

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