S&P gives B+ to W/S Packaging loan

Standard & Poor's said it assigned a B corporate credit rating to W/S Packaging Holdings Inc. The outlook is stable.

In addition, S&P assigned a B+ issue-level rating (one notch above the corporate credit rating) and 2 recovery rating to its proposed $276 million senior secured credit facilities based on preliminary terms and conditions.

The borrower is W/S Packaging Group Inc. and the facility consists of a $40 million senior secured revolving credit facility maturing in 2018 and $236 million senior secured term loan maturing in 2019. The 2 recovery rating indicates an expectation for substantial (70% to 90%) recovery in the event of a payment default.

"The ratings on W/S Packaging reflect our assessment of its business risk profile as 'weak' and its financial risk profile as 'highly leveraged.' We assess its management and governance as fair," said credit analyst Liley Mehta in a news release.

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