S&P rates Packaging notes BBB

Standard & Poor's said it assigned a BBB rating to Packaging Corp. of America's proposed $400 million senior unsecured notes due 2022.

The proceeds will be used to repay its $400 million 5.75% senior unsecured notes due 2013.

The BBB corporate credit rating reflects the company's satisfactory business risk and intermediate financial risk, S&P said.

The ratings also consider the company's competitive cost position, good customer diversity and above-average profitability, the agency said.

These are somewhat offset by the cyclical and competitive nature of the packaging industry and limited product diversity, S&P said.

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