S&P lifts W/S Packaging, rates notes B

S&P said it raised its corporate credit rating on W/S Packaging Holdings Inc. to B from CCC and removed the rating from CreditWatch, where S&P placed it with positive implications on Feb. 16.

The outlook is stable.

At the same time, S&P said it assigned a B issue-level rating and 4 recovery rating to the company's $250 million senior secured notes. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default.

“The upgrade reflects our belief that W/S Packaging has sufficient headroom under the financial covenants in its new capital structure given the covenant-lite terms of the senior secured notes and the springing fixed-charge covenant under its unrated asset-based lending (ABL) facility,” S&P said in a news release.

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