S&P views Reynolds Consumer positively

S&P said it revised its outlook for Reynolds Consumer Products Inc. to positive from stable and affirmed all its ratings, including the BB+ senior secured rating. The 2 recovery rating on the senior secured debt is unchanged, indicating substantial (70%-90%; rounded estimate: 80%) recovery in default.

“After multiple years of headwinds stemming from input cost inflation, supply chain disruptions, rising labor costs, and–more recently–equipment-related problems in its aluminum milling facilities, the company is now largely on track to restore its profitability and credit metrics,” the agency said in a statement.

S&P said now forecasts the company's S&P Global Ratings-adjusted leverage will decrease to just below 3x as of the end of fiscal year 2023 after peaking at 4x during the quarter ended March 31.

The agency said it also expects Reynolds’ annual S&P Global Ratings-adjusted EBITDA to reach about $650 million in 2023 and about $700 million in 2024 from $565 million in 2022.

© 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.