S&P: Silgan unaffected

Standard & Poor's said Monday that its ratings and outlook on Silgan Holdings Inc. (BB/stable/--) remain unchanged following the company's announcement that it has initiated a $0.15 per share quarterly cash dividend on its common stock.

As the largest metal food can producer in North America, Silgan generates solid free operating cash flows and maintains ample availability under its $400 million revolving credit facility.

Given the company's targeted level of debt reduction of about $200 million to $300 million by 2006, S&P said it expects that the company will primarily use its free cash flow for debt reduction and for the newly instituted dividend.

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