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
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
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