Moody's ups Smurfit-Stone liquidity

Moody's Investors Service said it upgraded Smurfit-Stone Container Enterprises Inc.'s speculative grade liquidity rating to SGL-2 from SGL-3.

The company's senior implied rating is B1, and the outlook is stable.

Moody's said the upgrade follows the Nov. 1 refinancing of the company's bank facility and the Nov. 23 closing of its new accounts receivable securitization program. The size and features of the new facilities combined with favorable containerboard market conditions resulted in the SGL upgrade.

Smurfit-Stone Container's new $800 million senior secured bank credit facility is committed for a five-year term. At closing, it is estimated there was unused capacity of about $450 million.

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