S&P: Treofan outlook negative

Standard & Poor's said it revised its outlook on Treofan Holdings GmbH and its operating subsidiary Treofan Germany GmbH & Co. KG to negative from positive, owing to its weakening liquidity.

At the same time, the agency said that the B- long-term corporate credit ratings on both entities were affirmed.

The B- issue rating on Treofan Germany's €170 million subordinated second-lien notes, with a recovery rating of 3, was also affirmed, S&P added, noting that the outlook revision reflects its concerns about the company's weakening operating performance and liquidity position, which has led management to seek further covenant amendments.

The ratings continue reflect the group's aggressively leveraged financial risk profile, strong competition in the fragmented polypropylene film industry and weak track record of operating performance, the agency said.

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