S&P affirms Pregis

Standard & Poor's said it affirmed the B corporate credit rating of Pregis Corp. and revised the outlook to stable from negative, prompted by the company's success in strengthening its operating profitability during the last several quarters through successful price increases, rationalization of less profitable products and customers, and operating cost improvements.

The company has also successfully established standalone operations since separating from Pactiv Corp. two years ago, remediated internal control weaknesses and reported its financial results on time during the past several quarters, the agency said, and Pregis has accomplished this amid a very volatile cost environment for plastic resins and significant senior management turnover.

S&P said the ratings on Pregis reflect its high debt leverage, somewhat offset by the benefits of a value-added product mix; good geographic, end-market and customer diversity; fairly stable and improving operating profitability; and a low level of capital spending and other required outlays.

© 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.