Moody's cuts Tekni-Plex notes

Moody's Investors Service said it downgraded the ratings of Tekni-Plex, Inc., reflecting continued pressure on profitability as concern about soft volume, high operating costs and the challenging pricing environment persist. The outlook is negative.

Moody's cut Tekni-Plex's $268 million 8¾% second-lien senior notes due 2013 to Caa2 from Caa1, $315 million 12¾% senior subordinated notes due 2010 to Ca from Caa2, senior implied rating to Caa1 from B3 and senior unsecured issuer rating to Caa3 from Caa2.

The susceptibility of margins to seasonality affecting roughly one-third of consolidated revenue and the company's negative variance under expectations constrain the ratings, according to Moody's.

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