We expect Kleopatra Holdings 1 S.C.A. (KP), the ultimate holding company of German packaging manufacturer Kloeckner Pentaplast, to generate positive (albeit minimal) adjusted free operating cash flow (FOCF) in 2019. However, we expect leverage to remain high at 11.3x for 2019 and 10.2x for 2020. We are affirming our 'B-' long-term issuer credit rating on KP, our 'B-' issue rating on its senior secured facilities, and our 'CCC' issue rating on the payment-in-kind notes. Our outlook remains negative. Our negative outlook reflects the risk that the capital structure could be unsustainable in the next 12 months, leading us to lower the rating. We expect KP's leverage to remain high at 11.3x by year-end 2019. We believe that the company may
