S&P rates Multi-Color facilities, notes

S&P said it removed its ratings on Multi-Color Corp. from CreditWatch, where they had been placed with negative implications on July 17. The agency also affirmed its ratings, including the BB- corporate credit rating.

The outlook is stable.

S&P also assigned a BB+ issue-level ratings to the company's proposed secured credit facilities, consisting of $400 million in revolving facilities due October 2022; $250 million term loan A due October 2022; and $400 million term loan B due October 2024. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 95%) recovery in a default scenario.

In addition, the agency assigned a B+ issue-level rating to the company's proposed $480 million unsecured notes due October 2025. The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 10%) recovery in a default scenario.

S&P said the affirmation reflects the view that despite temporary deterioration in credit measures, the company will see its business will strengthen from its purchase of Constantia Flexibles' labels unit, and that it will improve its credit measures during the next year.

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