S&P: Sealed Air on watch

Standard & Poor's said it placed its ratings, which consist of its BBB- corporate credit and senior unsecured debt ratings, on Sealed Air Corp. on Creditwatch with negative implications.

The agency said that this action reflects concerns that the company's earnings, cash flow, debt leverage, and financial policies may not support investment-grade ratings.

In addition, the agency added that the company faces potentially significant refinancing requirements beginning in 2009.

Operating margins continued to erode in the third quarter of 2008 to about 12.5% before depreciation and amortization, down significantly from the upper-teens percentage area two years ago, S&P noted.

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