S&P gives Libbey Glass CCC+

S&P said it assigned CCC+ ratings to LG Parent Holdco Inc., the parent of Libbey Glass LLC, and its senior secured term loan. The recovery rating is a 3, indicating an expectation for meaningful (50%-70%, rounded estimate: 50%) recovery in the event of a payment default. Libbey emerged from bankruptcy on Oct. 30.

“Due to volatile industry conditions, particularly in foodservice, and the restructured entity’s short operating history, we are assigning a CCC+ issuer credit rating to LG Parent Holdco Inc., parent of operating entity Libbey Glass LLC,” S&P said in a press release.

The outlook is stable. The outlook reflects the expectation Libbey will successfully implement its restructuring plans, improve profitability, generate sufficient cash flow, and maintain enough liquidity to execute its post-emergence plans, S&P said.

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