S&P rates Atlas Rigid loans B, CCC+

S&P said it assigned preliminary B long-term issuer credit ratings to Atlas Rigid GmbH and to its subsidiaries, Atlas Packaging GmbH and Atlas Rigid North America Inc.

The outlook is stable.

S&P also said it assigned a preliminary B rating and 3 recovery rating to the proposed €50 million senior secured revolving credit facility and €317 million senior secured term loan B.

The recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a preliminary CCC+ rating and 6 recovery rating to the proposed €70 million second-lien facility.

The recovery rating indicates 0% to 10% expected default recovery.

The ratings reflect the group's strong niche positions in the fragmented rigid plastic segment, S&P said.

The company's products are mostly sold to blue-chip food manufacturers and include a broad range of mainly thermoformed-molded, but also injection-molded, packaging solutions, the agency noted.

But the company's business risk profile is considered weak and the industry is very competitive with limited product differentiation, S&P said.

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