S&P lifts Rock-Tenn

Standard & Poor's said it raised its corporate credit rating on Rock-Tenn Co. to BBB- from BB+ and removed all ratings from CreditWatch, where they were previously placed with positive implications.

The outlook is stable.

S&P said it also affirmed the BBB- issue-level rating on the company's secured bank credit facilities and raised the issue-level ratings on the company's secured notes due 2011 and 2013 to BBB- from BB+.

In addition, S&P raised the rating on the company's senior unsecured notes due 2016 to BB+ from BB-.

The agency said that Rock-Tenn's debt has declined significantly through strong free cash flow generation, a trend it expects will likely continue in the near term. Additionally, lower input costs and a continued focus on cost reductions have resulted in a significant improvement in operating performance and cash flow.

The stable outlook reflects S&P's view that Rock-Tenn will maintain credit metrics around current levels despite some potential weakness in operating performance in the near term.

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