Holding company BWAY Parent Co. Inc., the indirect parent of Atlanta, Ga.-based packaging producer BWAY Corp., is issuing $125 million of payment-in-kind (PIK) toggle notes. BWAY plans to use proceeds to finance a cash distribution to equity holders. We're lowering our corporate credit ratings on BWAY Holding Co. and BWAY Corp. by one notch to 'B' from 'B+' and assigning a stable outlook. We're also lowering our existing issue ratings on the senior secured credit facilities and senior unsecured notes. We're assigning a 'CCC+' issue rating and '6' recovery rating to the proposed PIK toggle notes. The stable outlook reflects BWAY's steady profitability and ability to generate free cash flow to support the ratings. NEW YORK (Standard&Poor's) Oct.
