S&P cuts Sonoco Products

S&P said it downgraded Sonoco Products Co.’s rating by a notch to BBB.

“Sonoco's credit measures have underperformed versus expectations. When we revised Sonoco's outlook to negative in the summer of 2017, we indicated the potential for a downgrade if the company could not strengthen its funds from operations (FFO)-to-debt ratio to above 35%. Since then, Sonoco has ended each fiscal year at about 30%. This performance is not appropriate for the BBB+ rating given Sonoco's weakness in other credit measures as well as its relative lack of operational scale,” said S&P in a press release.

The outlook is negative.

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