S&P rates TricorBraun loans B+

Standard & Poor's said it assigned a B+ issue-level rating and a 2 recovery rating to TricorBraun Inc.'s proposed $75 million revolving credit facility due 2018 and $476.4 million term loan B due 2018.

At the same time, S&P affirmed its B corporate credit rating.

The outlook is stable.

"Standard & Poor's Ratings Services' ratings on TricorBraun Inc. reflect its 'highly leveraged' financial risk profile and supplier concentration, along with the fragmented and highly competitive structure of the rigid-plastic packaging industry," S&P credit analyst Henry Fukuchi said in a news release.

"Partially offsetting these factors are the company's position as the largest participant in the distribution segment of the U.S. glass and plastic packaging industry, its relatively stable end markets, with good customer diversity, its stable EBITDA margins, and its consistent annual free cash generation. The ratings also reflect gradually improving operating trends, which should continue to support an improving financial risk profile in the next few years," Fukuchi added in the release.

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