Moody’s cuts W/S Packaging, facilities

Moody's Investors Service said it downgraded W/S Packaging Group, Inc.’s corporate family rating to Caa3 from Caa2, probability of default rating to Ca-PD from Caa3-PD and senior secured credit facilities to Caa2 from Caa1.

The outlook was changed to stable from negative.

Moody’s said the Caa3 corporate family rating reflects lower than expected operating performance, high leverage and resulting weak liquidity and heightened refinance risk.

The rating reflects the lack of consistent improvement in operating performance and reliance on an equity cure and renegotiated covenant levels to avoid covenant breach, the agency added.

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