S&P ups Rock-Tenn outlook to stable

Standard & Poor's said it revised its outlook on Rock-Tenn Co. to stable from negative.

At the same time, S&P said it affirmed all its ratings including its BB corporate credit rating on the company.

The outlook revision reflected favorable industry conditions, improved operating margins and cash flow and debt reduction in line with S&P's expectations.

Although debt leverage of 4.1x at Sept. 30 is above the 3.5x we expect for the ratings, the agency said it believes that improved paperboard prices, higher operating rates and lower costs over the intermediate term should permit Rock-Tenn to continue its recent track record of reducing debt.

S&P added that the ratings on Rock-Tenn reflect modest operating margins and aggressive financial leverage.

© 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.