Moody's affirms Graham Packaging, cuts outlook to negative

Moody's Investors Service said it affirmed the existing corporate family rating of B2 for Graham Packaging, LP, but changed the outlook to negative.

According to Moody's, the negative outlook reflects Graham's high financial leverage, modest interest coverage and weak free cash flow.

Free cash flow is insufficient to cover term loan amortizations and the current credit profile leaves little room for any operational missteps or exogenous shocks, the agency said, adding that the ratings are supported by Graham's competitive position, long-standing, customer relationships and new management team.

© 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.