Moody's boosts Rock-Tenn

Moody's Investors Service said it upgraded Rock-Tenn Co.'s corporate family rating to Ba1 from Ba2 reflecting the company's improved credit protection metrics, management's commitment to debt reduction and expectations of continued strong operating and financial performance.

The agency alos upgraded Rock Tenn's senior secured rating to Baa3 (LGD3, 32%) from Ba1 (LGD3, 37%), the partially secured 2011 and 2013 senior notes rating to Ba2 (LGD5, 79%) from Ba3 (LGD5, 78%), the senior unsecured note rating to Ba2 (LGD5, 79%) from Ba3 (LGD5, 78%) and the speculative grade liquidity rating to SGL-1 from SGL-2.

The outlook is stable.

The upgrade recognizes the improved credit protection metrics and increased financial flexibility arising from the company's strong operating performance and debt reduction efforts, according to the agency.

Rock Tenn's Ba1 corporate family rating reflects the company's favorable cost position within the industry through its low cost vertically integrated asset base, its position as one of the largest producers of folding cartons and promotional point-of-purchase displays in North America, the company's strong financial performance and its good committed liquidity arrangements, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.