S&P rates GCL notes CCC+

Standard & Poor's said that it assigned a B long-term corporate credit rating to Guala Closures SpA and its indirect parent GCL Holdings SCA.

The outlook is stable.

S&P assigned an issue rating of CCC+ and recovery rating of 6 to the €200 million of senior notes issued by GCL.

The rating on GCL reflects its highly leveraged financial profile, particularly its weak cash flow measures, which are adversely affected by substantial cash tax payments, the agency said. The ratings also reflect the group's fair business risk profile.

These risks are partly mitigated by Guala's leading market share in the safety closures market, which offers high growth potential, especially in Asia and Eastern Europe, the agency added.

For full-year 2010, GCL's debt-to-EBITDA ratio improved to 5.8 times, compared with 6.4 times in the prior year.

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