S&P boosts Chesapeake senior unsecured debt to B+

Standard & Poor's said it raised its senior unsecured debt rating on Chesapeake Corp. to B+ from B.

The corporate credit rating on Chesapeake is BB- and the outlook is stable, the agency added.

"The rating actions followed the company's announcement that it did not complete its proposed refinancing transaction," said S&P credit analyst Lisa Wright.

The ratings on paperboard and plastics packaging producer Chesapeake reflect its very thin discretionary cash flow, very aggressive debt leverage, industry overcapacity and competitive pricing pressures, the agency said, adding that the ratings also reflect some ability to pass on raw-material cost increases to customers and the diversity of the company's end markets and operations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.