S&P rates Sealed Air facility BBB

Standard & Poor's said it assigned its BBB rating to Saddle Brook, N.J.-based packaging manufacturer Sealed Air Corp.'s new $350 million senior unsecured multi-currency revolving credit facility due 2006 and affirmed Sealed Air's existing ratings.

The outlook is negative.

S&P said the ratings on Sealed Air Corp. reflect the company's above-average business risk profile and its consistent generation of free cash flows, which are partially offset by its somewhat aggressive financial management.

The company's debt levels are high, with debt as a percentage of total capital near 71% at Sept. 30. Yet, S&P said it expects that the company will limit its spending and apply its strong free cash flows toward reducing debt for the next couple of years.

Thus, funds from operations as a percentage of total debt, which is currently weak for the rating at 18%, should trend toward 25%, the agency said.

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