New York, June 28, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings -and other ratings that are associated with the same analytical units for the rated entity(entities) listed below.
The review was conducted through a portfolio review discussion held on 21 June 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. A possible outcome from periodic reviews is a referral of a rating to a rating committee.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
Key Rating Considerations
The principal methodology used for this review was Packaging Manufacturers: Metal, Glass and Plastic Containers published in December 2021. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Scale: Scale is considered because it is an t indicator of the overall depth of a company's business and its success in attracting a variety of customers, as well as its resilience to shocks, such as shifts in demand or rapid cost increases. A company's scale can provide insight into its market position and franchise strength. Scale is measured using total reported revenue.
Business Profile: The business profile of a packaging manufacturer is considered because it greatly influences its ability to generate sustainable earnings and operating cash flows and has a considerable impact on the stability of its revenue and margins. A packaging manufacturer's business profile provides important indications of its ability to compete on a number of levels, including price, volume, production capacity, product quality and innovation. Core aspects of a packaging manufacturer's business profile are its product strengths and differentiation and its competitive position.
Profitability and Efficiency: Profits matter because they are needed to generate sustainable cash flow and maintain a competitive position, which includes an ability to invest in marketing, research, factories, and personnel. High profitability sustained over time is generally an indicator of operating efficiency and competitive advantage. Profitability provides an important indication of a company's cost structure and its ability to operate through economic downturns, reinvest in fixed assets, service its debt and meet other obligations. The EBITDA margin is an indicator of profitability and efficiency.
Leverage and Coverage: Leverage and cash flow coverage measures provide important indications of a company's financial flexibility and long-term viability, including its ability to adapt to changes in consumer preferences, regulation, and the competitive environment. Companies in this sector have typically supported their borrowing needs by relying on sizable, fixed assets as collateral and significant revenue from long-term contracts to pay down debt. Among others, ratios such as Debt/ EBITDA, EBIDTA/ Interest Expense, and Free Cash Flow/ Debt are indicators of leverage and coverage.
Financial Policy: Financial policy encompasses management and board tolerance for financial risk and commitment to a strong credit profile. It is an important consideration, because it directly affects debt levels, credit quality, the future direction for the company and the risk of adverse changes in financing and capital structure. Liquidity management is also an important aspect of overall risk management and can provide insight into risk tolerance.
Other Factors: Other factors may include, but are not limited to, financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management, assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends also affect ratings.
This announcement applies only to Rated Entities with EU rated, UK rated, EU endorsed and UK endorsed ratings. Rated Entities, with Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced herein to the extent necessary, if they are part of the same analytical unit.
Please see the Issuer page on https://ratings.moodys.com for each of the ratings covered, most updated credit rating action, rating history, and Credit Rating action Press Release including the rating rationale and factors that could lead to a rating upgrade or downgrade.
List of Issuers/Rated Entities
Altium Packaging LLC
Anchor Glass Container Corporation
Anchor Packaging, LLC
Berlin Packaging LLC
Berry Global Group Inc.
BW Holding, Inc.
Charter Next Generation, Inc.
Closure Systems International Group Inc.
Clydesdale Acquisition Holdings, Inc.
Crown Holdings, Inc.
Five Star Holding LLC
Graham Packaging Company, Inc
Liqui-Box Holdings, Inc.
Mauser Packaging Solutions Holding Company
Owens-Illinois Group, Inc.
Pactiv Evergreen Inc.
PHM Netherlands Midco B.V.
Plastipak Holdings, Inc.
Pregis TopCo LLC
Pretium PKG Holdings, Inc.
Printpack Holdings, Inc.
ProAmpac PG Borrower LLC
Ring Container Technologies Group, LLC
RLG Holdings, LLC
Sealed Air Corp.
Secure Acquisition Inc.
Silgan Holdings Inc.
Technimark Holdings LLC
TJC Spartech Acquisition Corp.
Transcendia Holdings, Inc.
Tricorbraun Holdings, Inc.
Trident TPI Holdings, Inc.
Valcour Packaging LLC
This publication does not announce a credit rating action.
For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com
for the most updated credit rating action information and rating history.
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653