Moody's changes Sealed Air outlook to stable

Moody's Investors Service said it confirmed the Baa3 senior unsecured rating of Sealed Air Corp. and changed the outlook to stable from negative.

Moody's said the stable outlook reflects the recent completion of two positive developments: The first is the agreement between Sealed Air and the creditors in the WR Grace bankruptcy that should settle litigation against Sealed Air; the second is the completion of a $350 million three-year unsecured revolving credit facility, which Moody's believes will strengthen Sealed Air's liquidity position.

The settlement agreement provides for the payment by Sealed Air, at conclusion of WR Grace's bankruptcy proceedings, of $512.5 million in cash (accruing at 5.5% a year) and of 9 million Sealed Air common stock shares. These payments - to be made into a 524 (g) trust - would settle all past and future asbestos-related claims brought against Sealed Air related to its 1998 acquisition of Cryovac.

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