Moody's ups Plastipak, rates loans Ba3

Moody's Investors Service said it upgraded Plastipak Holdings, Inc.'s corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD. The agency also assigned a Ba3 rating to the planned senior secured credit facilities, including revolver and term loans, issued by Plastipak Packaging, Inc., a wholly-owned subsidiary of Plastipak.

"The upgrade considers Plastipak's steady deleveraging in the past several years and our expectation that leverage will continue to improve for the next 12-18 months," said Motoki Yanase, a vice president and senior credit officer at Moody's, in a press release.

The proceeds will be used to refinance the term loan maturing in 2024 and senior unsecured notes maturing 2025 and pay fees and expenses associated with the transaction.

The outlook for Plastipak is stable.

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