S&P rates Sonoco loan BBB+

Standard & Poor’s said it assigned a BBB+ senior unsecured debt rating to Sonoco Products Co.’s new $600 million senior credit facility consisting of a $350 million revolving credit facility due 2019 and a $250 million term loan due 2017.

The company’s other ratings, including its BBB+ corporate credit and A-2 commercial paper ratings, remain unchanged.

The outlook is stable.

Sonoco expects to use the term loan and some usage under its commercial paper to fund the recently announced acquisition of Weidenhammer, S&P said.

The proposed acquisition modestly adds to Sonoco’s diversity and slightly improves it profitability, the agency said.

The ratings also consider its strong business risk profile and intermediate financial risk profile, S&P said.

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