Research Update: Crown Holdings Inc. Upgraded To 'BB+' Following Signode Acquisition; Debt Ratings Raised

Crown Holdings Inc.'s integration of Signode Industrial Group Holdings (Bermuda) Ltd. is proceeding as planned, and we see strong cash flows from the combined business as a path to reducing S&P Global Ratings-adjusted leverage to below 5x over the next 12 months. Therefore, we raised the issuer credit rating on Crown to 'BB+' from 'BB'. We also raised the issue-level ratings on Crown in conjunction with the issuer credit rating, including the senior secured facilities to 'BBB-' from 'BB+', Crown European Holdings SA's unsecured notes to 'BB+' from 'BB', and Crown's domestic debt to 'BB-' from 'B+'. The stable outlook reflects our expectation the Crown will continue to generate strong cash flows following the Signode integration and will prioritize repaying

...+ Crown Holdings Inc.'s integration of Signode Industrial Group Holdings (Bermuda) Ltd. is proceeding as planned, and we see strong cash flows from the combined business as a path to reducing S&P Global Ratings-adjusted leverage to below 5x over the next 12 months. + Therefore, we raised the issuer credit rating on Crown to '##+' from '##'. + We also raised the issue-level ratings on Crown in conjunction with the issuer credit rating, including the senior secured facilities to '###-' from '##+', Crown European Holdings SA's unsecured notes to '##+' from '##', and Crown's domestic debt to '##-' from 'B+'. + The stable outlook reflects our expectation the Crown will continue to generate strong cash flows following the Signode integration and will prioritize repaying debt such that the company's debt-to-EBITDA will approach the mid-4x range by the end next year....

Research Update