S&P trims Kleopatra view to negative

S&P said it revised its outlook to negative from stable on Kleopatra Holdings 1 SCA, the ultimate holding company of Germany-based plastic packaging manufacturer Kloeckner Pentaplast, as well as Kleopatra Holdings 2 SCA, the parent of Kloeckner Pentaplast, and Kloeckner Pentaplast of America Inc., the issuer of the group's term loan and an operating subsidiary of KP.

At the same time, S&P affirmed its B long-term issuer credit ratings on KP, Kleopatra Holdings 2 SCA and Kloeckner Pentaplast of America Inc.

S&P also affirmed its B issue rating on the group's senior secured facilities, comprising a €150 million revolving credit facility and a €1.4 billion equivalent term loan. The recovery rating remains 4, reflecting an expectation of average recovery prospects (30%-50%; rounded estimate 40%) in the event of a payment default.

S&P also affirmed its CCC+ issue rating on the group's €395 million notes. The recovery rating of 6 reflects an expectation of 0%-10% recovery (rounded estimate 0%) in a default scenario.

“The outlook revision follows KP's weaker-than-expected results in the fiscal year ending Sept. 30, 2017. On this date, adjusted EBITDA to debt stood at 12.5x, well below our previous forecast of about 8x,” S&P said in a news release.

© 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.