S&P rates CCL Industries notes BBB

S&P said it assigned its BBB issue-level rating to CCL Industries Inc.'s proposed C$300 million senior notes.

The agency said it understands the company will use the net proceeds primarily to reduce the amount drawn under its revolving credit facility.

“We expect debt levels this year to be slightly higher than we had previously forecast, owing to the company's higher-than-anticipated acquisition activity this year,” S&P said in a news release.

“That said, our BBB corporate credit rating and stable outlook on CCL are unchanged reflecting our view that the company should sustain adjusted funds from operations-to-debt above 35% supported by positive organic EBITDA growth and more than C$300 million in annual discretionary cash flow that should facilitate debt reduction and provide financial flexibility for future acquisitions.”

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