Moody's affirms Graphic Packaging

Moody's Investors Service said it affirmed the ratings of Graphic Packaging International and continued to maintain a negative outlook.

The negative outlook is based on Graphic's weak debt protection measurements and uncertainty about the company's ability to reduce debt and improve performance to a level that supports the B1 ratings.

Moody's said it believes, however, that pressure on Graphic's operating earnings and cash flow, which has been impacted by steady gross margin deterioration due to higher prices for chemical-based inputs, fiber and energy, will begin to stabilize over the intermediate term.

Ratings affirmed include the corporate family rating at B1, the senior secured term loan and revolving credit facility at B1, the senior unsecured notes at B2, the senior subordinated notes at B3, the speculative grade liquidity rating at SGL-3 and a negative outlook.

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