Moody's lifts Plastipak view to positive

Moody's Investors Service said it changed the outlook for Plastipak Holdings, Inc. to positive from stable and affirmed the B2 corporate family and probability-of-default ratings and the B3 (LDG5, 77%) $250 million guaranteed senior unsecured notes due 2015.

The agency said the change of outlook acknowledges the positive momentum the company has been experiencing during a challenging period for the industry. Despite weak results in the first quarter of 2006, primarily because of softness in the North American operations and poor performance in Brazil, Plastipak rebounded and achieved strong consolidated operational results including good results in its small subsidiaries Clean Tech and Whiteline Express, Ltd.

The positive outlook reflects Moody's expectation of continued reduction in financial leverage and improvement in cash flow generation, which has been delayed due to the company's spending on growth initiatives. The outlook also recognizes the realized benefits from the integration of the LuxPET acquisition, the recently successful renegotiation of significant customer contracts and the maintenance of solid liquidity.

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