S&P lowers LABL

S&P said it LABL Inc.’s issuer rating to B- from B. LABL does business through its subsidiary Multi-Color Corp.

The downgrade follows the issuance by subsidiary LABL Intermediate Holding Corp. of $500 million of payment-in-kind toggle notes to fund a distribution to its shareholders, S&P said.

“This transaction demonstrates ownership's aggressive financial policies and calls into question their willingness to allow Multi-Color to deleverage toward 7x, which is the level we viewed as acceptable for the previous rating,” S&P said in a press release.

The outlook is stable.

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