S&P: Pactiv on watch

Standard & Poor's said it placed a BBB corporate credit and senior unsecured debt ratings on Pactiv Corp. on CreditWatch with negative implications.

The negative watch follows unconfirmed reports that Pactiv is in discussions with private equity firm Apollo Global Management regarding a potential leveraged buyout of the company.

The agency said it expects to resolve the watch after it reviews additional information related to the buyout.

If the buyout takes place, the agency said it expects to lower the ratings, potentially well into the speculative grade, depending upon the proposed capital structure.

If no transaction occurs, S&P said it expects to affirm the ratings.

The ratings incorporate Pactiv's strong business risk profile and significant financial risk profile, the agency added.

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