TEXT - S&P rates Crown Americas
Jan 9 - Standard & Poor's Ratings Services said today that its 'BB' senior unsecured debt rating and '5' recovery rating on the 4.5% senior unsecured notes due 2023 issued jointly by Crown Americas LLC and Crown Americas Capital Corp. IV, wholly owned subsidiaries of Crown Holdings Inc. (Crown Holdings) remain unchanged following the proposed $200 million add-on to the notes. The additional notes will be issued under an indenture dated Jan. 9, 2013 pursuant to which Crown Americas and Crown Americas Capital IV previously issued $800 million of 4.5% senior notes. The issue rating is one notch below the 'BB+' corporate credit rating on Crown Holdings. The '5' recovery rating indicates our expectation of modest (10%-30%) recovery in the event of a payment default. All our other ratings on Crown Holdings and its subsidiaries remain unchanged. For the complete recovery analysis, see our recovery report on Crown to be published as soon as possible following this report on RatingsDirect on the Global Credit Portal. "The company plans to use proceeds of the add-on notes offering to repay $200 million of senior secured term loans," said Standard & Poor's credit analyst Liley Mehta. The ratings reflect Crown's "satisfactory" business risk profile as a leading global can manufacturer and its "significant" financial risk profile. We expect the key funds from operations to total debt ratio to remain at about 20%, which we consider appropriate for the rating. For the entire corporate credit rating rationale, see our summary analysis on Crown Holdings published Dec. 10, 2012, on RatingsDirect. RELATED CRITERIA AND RESEARCH Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012 Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 Key Credit Factors: Methodology And Assumptions On Risks In The Packaging Industry, Dec. 4, 2008 RATINGS LIST Ratings Unchanged Crown Holdings Inc. Corporate Credit Rating BB+/Stable/-- Crown Americas LLC Crown Americas Capital Corp. IV $1 bil. 4.5% notes due 2023 Senior Unsecured BB Recovery Rating 5
- Ukraine says Russian tanks flatten town; EU to threaten more sanctions |
- EU wields Russia sanctions threat but timing vague |
- F-16s dispatched for unresponsive pilot of small plane near D.C.
- Polish president warns Germany of Putin's 'empire' ambitions
- Car tied to suspected threat against Obama found in Connecticut