S&P cuts Reynolds, debt

Standard & Poor's said it lowered its corporate credit rating on Reynolds Group Holdings Ltd. and its subsidiaries to B from B+.

The agency said it also lowered the issue-level ratings on the company's senior secured debt to B+ from BB- and lowered the issue level ratings on its unsecured debt to CCC+ from B-. The 2 and 6 recovery ratings, which remain unchanged, reflect an expectation for substantial recovery and negligible recovery, respectively, in the event of a payment default. The outlook is stable.

"The downgrades reflect Reynolds' still highly leveraged financial profile and lack of earnings growth and debt reduction to the extent we previously expected," said S&P credit analyst Liley Mehta in a news release.

"The ratings on Reynolds reflect Standard & Poor's assessment of the company's business risk profile as 'strong' and financial risk profile as highly leveraged."

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