Bulletin: WestRock Co.'s Goodwill Impairment Charge Does Not Affect Our Overall Expectations

NEW YORK (S&P Global Ratings) Nov. 12, 2020--S&P Global Ratings said today that its ratings on WestRock Co. (BBB/Negative/--) are unaffected by the company's $1.3 billion goodwill impairment charge to its consumer packaging segment. The non-cash charge is primarily attributable to the merger between Rock-Tenn and MeadWestvaco. Our current forecast continues to reflect mid-single-digit organic volume declines over the next 12 months and FFO to debt close to 20% in fiscal 2021. The company has paid down a significant portion of its gross debt ($632 million in fiscal 2020), and we expect it will continue prioritizing debt reduction over shareholder rewards until it reaches its stated net leverage target of 2.25x to 2.5x.

...November 12, 2020 NEW YORK (S&P Global Ratings) Nov. 12, 2020--S&P Global Ratings said today that its ratings on WestRock Co. (###/Negative/--) are unaffected by the company's $1.3 billion goodwill impairment charge to its consumer packaging segment. The non-cash charge is primarily attributable to the merger between Rock-Tenn and MeadWestvaco. Our current forecast continues to reflect mid-single-digit organic volume declines over the next 12 months and FFO to debt close to 20% in fiscal 2021. The company has paid down a significant portion of its gross debt ($632 million in fiscal 2020), and we expect it will continue prioritizing debt reduction over shareholder rewards until it reaches its stated net leverage target of 2.25x to 2.5x....

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