Moody's rates Crown Cork notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to the new senior unsecured notes due 2018 and affirmed the Ba2 corporate family rating of Crown Cork and Seal Co., Inc., along with its probability of default at B2 and speculative grade liquidity rating at SGL-2, $150 million senior unsecured notes due 2096 with $63.5 million outstanding at B1 (LGD 6, 94%) and $350 million senior unsecured notes due 2026 at B1 (LGD 6, 94% from LGD 6, 93%).

The agency also said it upgraded Crown Americas, LLC's $130 million revolving credit facility due 2011 to Baa2 (LGD 1, 9%) from Baa3 (LGD 2, 12%) and affirmed its $450 million revolving credit facility due 2015 at Baa2 (LGD 1, 9% from LGD 2, 11%), $365 million term loan B due 2012 with $150 million outstanding at Baa2 (LGD 1, 9% from LGD 2 , 11%), $500 million senior unsecured notes due 2013 with $200 million outstanding at Ba3 (LGD 4, 61%) and $400 million senior unsecured notes due 2017 to Ba3 (LGD 4, 65% from LGD 4, 61%).

The agency also said it assigned to Crown European Holdings SA's new €500 million senior unsecured notes due 2018 a rating of Ba1 (LGD 2, 27%) and affirmed its $700 million European revolving credit facility due 2015 at Baa2 (LGD 1, 9% from LGD 2, 11%). The agency also upgraded its $64 million European revolving credit facility due 2011 at Baa2 (LGD 1, 9%) from Baa3 (LGD 2, 12%) and affirmed €278 million euro term loan B due 2012 at Baa2 (LGD 1, 9% from LGD 2, 11%) and €460 million outstanding 6¼% first-lien notes due 2011 at Baa2 (LGD 1, 9% from LGD 2, 11%).

The agency also affirmed Crown Metal Packaging Canada LP's $50 million Canadian revolving credit facility due 2015 at Baa2 (LGD 1, 9% from LGD 2, 11%).

The outlook remains stable.

The rating is in response to news that the company priced €500 million principal amount of senior notes due 2018. The senior notes will be issued by Crown European Holdings and are unconditionally guaranteed by the company and certain of its subsidiaries, Moody's said.

The proceeds will be used to retire all or a portion of the company's outstanding €150 million first-priority senior secured notes due 2011, its outstanding $200 million senior unsecured notes due 2013, to repay some short-term debt, to pay fees and expenses associated with the offering and to provide funds for general corporate purposes, the agency said.

The ratings reflect the company's position in an oligopolistic industry, relatively stable end markets and improved profitability, Moody's said.

The ratings are constrained by the company's concentration of sales, exposure to international markets and risks inherent in its strategy to grow in emerging markets, the agency added.

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