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TEXT-S&P rates Packaging Corp. of America notes
June 21, 2012 / 3:55 PM / in 5 years

TEXT-S&P rates Packaging Corp. of America notes

June 21 - Standard & Poor's Ratings Services said today it assigned its
'BBB' issue-level rating to U.S.-based Packaging Corp. of America's
 proposed $400 million senior unsecured notes due 2022. We expect the
company to use proceeds to repay its $400 million 5.75% senior unsecured notes
due 2013. 

Our 'BBB' corporate credit rating reflects our view of the company's 
"satisfactory" business risk and "intermediate" financial risk. Our business 
risk assessment reflects the company's competitive cost position, good 
customer diversity, and above-average profitability. These are somewhat offset 
by the cyclical and competitive nature of the packaging industry and limited 
product diversity. Our financial risk assessment assumes modest volume growth 
in a slowly recovering economy, steady pricing, and less input cost pressure 
in 2012 relative to 2011. Under this scenario we expect leverage to 
approximate 2x EBITDA. 

Packaging Corp. is a large producer of containerboard and corrugated products 
that generated $2.7 billion of revenues in the 12 months ended March 31, 2012.

RELATED RESEARCH AND CRITERIA
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded, 
May 27, 2009
     -- Corporate Ratings Criteria 2008, published April 15, 2008.


RATINGS LIST
Packaging Corp. of America 
 Corporate credit rating                    BBB/Stable/--

New rating
 Proposed $400 mil sr unsecd nts due 2022   BBB


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

Primary Credit Analyst: Tobias Crabtree, CFA, New York (1) 212-438-6503;
                        tobias_crabtree@standardandpoors.com
Secondary Contact: James Fielding, New York (1) 212-438-2452;
                   james_fielding@standardandpoors.com

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