The coronavirus, looming economic recession, and fall-off in oil prices will likely pressure Mauser Packaging Solutions Holding Co.'s business prospects. We expect Mauser's operating performance will be challenged over the next 12 months and could cause leverage to remain above 9x. Therefore, we have affirmed our 'B' issuer credit rating and revised the outlook to negative from stable. The negative outlook reflects the risk that a prolonged economic downturn could further weaken already elevated credit metrics and lead to deteriorating cash flows. Over the next 12-18 months, we expect Mauser's volumes will vary significantly by end markets and product categories. On the downside, we expect demand in the company's petrochemical, general manufacturing, and housing/construction end markets and reconditioning services to
