S&P ups Transcontinental

Standard & Poor's said it raised the long-term corporate credit rating on Transcontinental Inc. to BBB from BBB-.

The outlook is stable.

The upgrade reflects an expectation of the continued improvement in Transcontinental's financial risk profile, stemming from lower debt levels, increased profitability and significant financial flexibility due to management's focus on streamlining the business and cutting costs, S&P said.

These actions have resulted in a material strengthening of credit protection measures, with an expectation that Transcontinental will maintain an adjusted debt-to-EBITDA in the 2x range in the medium term, the agency said.

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