S&P lifts Silgan Holdings view to stable

S&P said it revised its outlook on Silgan Holdings Inc. to stable from negative and affirmed its BB+ corporate credit rating on the company.

At the same time, S&P affirmed its BBB- issue-level rating on the company's senior secured credit facilities. The 1 recovery rating remains unchanged, indicating an expectation for very high (90%-100%; rounded estimate: 95%) recovery for lenders in the event of a payment default.

In addition, S&P said it affirmed its BB- issue-level rating on the company's senior unsecured debt. The 6 recovery rating remains unchanged, indicating an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a default.

“The rating actions reflect our expectation that Silgan's operating performance will continue to improve in 2018, driven by the benefits from full-year consolidation with Dispensing Systems, which it acquired last year, rising profits in its legacy business (from optimization initiatives), and greater free cash flow generation – all of which should enable the company to reduce debt and improve its credit metrics,” S&P said in a news release.

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