S&P assigns CPG Finance B-, loan CCC

Standard & Poor's said it assigned its B- corporate credit rating to CPG Finance Inc., the indirect parent holding company of Exopack Holding Corp. (B-/stable).

The outlook is stable.

In addition, the agency said it assigned its CCC rating to CPG Finance's proposed $130 million senior unsecured term loan due 2012, based on preliminary terms and conditions.

The rating on the unsecured term loan is two notches below the corporate credit rating, reflecting the presence of a substantial amount of priority senior debt at Exopack, S&P said.

The ratings on CPG Finance and Exopack reflect a vulnerable business position in a fragmented and highly competitive market, a highly leveraged financial profile, an aggressive financial policy and continuing integration risks associated with the consolidation of three separate businesses into the current entity, the agency added.

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