S&P rates Silgan notes BB+

Standard & Poor's said it assigned an issue-level rating of BB+ and a 4 recovery rating to Silgan Holdings Inc.'s proposed $200 million senior unsecured notes due 2016.

The 4 recovery rating indicates the expectation for average recovery in the event of a payment default, the agency said, adding that expected proceeds are to be used to pay down the company's outstanding term loans.

"The ratings on Silgan reflect its satisfactory business position as a major North American producer of rigid consumer goods packaging, its fairly steady earnings and free cash flow generation, and its demonstrated ability to maintain (or quickly return to) a capital structure consisting with the rating," said S&P credit analyst Liley Mehta.

© 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.