S&P rates Sonoco notes BBB+

Standard & Poor's said it assigned a BBB+ senior unsecured debt rating to Sonoco Products Co.'s proposed $350 million senior notes due 2040 to be drawn down from its existing shelf registration.

The proceeds will be used to purchase all or a portion of the company's outstanding notes due 2013 and its 5.625% notes due 2016 and/or a portion of its 9.2% debentures due 2021 and also to pay related fees and expenses. Sonoco's existing ratings, including the BBB+ long-term corporate credit rating and the A-2 short-term rating, are affirmed.

The ratings reflect the company's global leadership position in paperboard tubes and cores and composite cans, a steadily growing consumer packaging segment, longstanding track record of fairly stable earnings and cash flow, and expectations that credit measures will remain at or above appropriate levels, S&P said.

The agency said it characterizes Sonoco's business risk profile as satisfactory and financial risk profile as intermediate.

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