S&P affirms Temple-Inland long term

Standard & Poor's raised its short-term ratings on Temple-Inland Inc. to A-2 from A-3, revised the outlook to stable from negative and affirmed its long-term ratings on the company, including the BBB corporate credit rating.

"These rating actions reflect the strengthening of the company's financial profile during the past few quarters through debt reduction and improving earnings and cash flow," said S&P credit analyst Cynthia Werneth.

S&P said the ratings reflect its average business position and moderate financial policies. The company's manufacturing businesses are cyclical but benefit from a high level of vertical integration.

Through mill closures immediately following the Gaylord acquisition, as well as more recent initiatives including box plant consolidation, companywide consolidation of administrative functions and programs to reduce purchasing and transportation costs, Temple-Inland has begun to strengthen its cost position in corrugated packaging which, however, still compares unfavorably to that of most peers, S&P 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.