Moody's affirms Rock-Tenn debt

Moody's Investors Service said it confirmed Rock-Tenn Co.'s long-term debt ratings and restored the outlook to stable.

The review for possible downgrade was prompted by ongoing margin pressure that, given the background of increased debt levels as a consequence of an acquisition that was completed last year, has caused credit protection measures to lag those appropriate for the current rating, the agency noted.

In the interim, profit margins for companies such as Rock-Tenn that manufacture recycled fiber-based paperboard have stabilized as input costs for natural gas and old corrugated containers have moderated, the agency said.

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