Moody’s rates W/S Packaging, notes B3

Moody’s Investors Service said it assigned a B3 corporate family rating and a B3-PD to W/S Packaging Holdings, Inc., effectively upgrading the previous ratings at W/S Packaging Group, Inc., including the Caa3 corporate family rating and Ca-PD probability of default rating.

Moody's also assigned a B3 rating to the new senior secured notes.

The outlook is stable.

The ratings for W/S Packaging Group will be withdrawn at close, the agency said.

Moody’s said the B3 corporate family rating reflects the high pro forma leverage of 6.3 times and potential volatility in operating income caused by customer promotional activity counterbalanced by an adequate liquidity profile including less restrictive financial covenants.

The rating also reflects various initiatives management is undertaking to improve performance and reduce volatility as well as the costs for these initiatives and the time and execution risk in implementing them, the agency added.

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