Moody's rates Beverage Packaging notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to the proposed senior subordinated notes of Beverage Packaging Holdings II Issuer Inc. (USA) and co-issuer Beverage Packaging Holdings (Luxembourg) II SA.

Additionally, Moody's affirmed the company's B3 corporate family, B3-PD probability of default and all other instrument ratings.

The outlook is stable.

The proceeds from the new notes will be used to refinance the existing €420 senior subordinated notes due June 15, 2017.

The B3 corporate family rating reflects Reynolds Group Holdings Ltd.'s weak credit metrics, concentration of sales within certain segments and acquisitiveness/financial aggressiveness. The rating also reflects the competitive and fragmented market and the company's mixed contract and cost pass-through position. Reynolds Group has comparatively limited transparency, a complex capital and organizational structure and is owned by a single individual.

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