Research Update: ProAmpac PG Intermediate LLC Downgraded To 'B-' On Weaker-Than-Expected Operating Performance, Outlook Stable

ProAmpac PG Intermediate LLC's (ProAmpac) operating performance has been weaker than we expected, with declining sales volumes and higher operating costs attributing to its elevated credit metrics. Therefore, we are downgrading ProAmpac to 'B-' from 'B'. At the same time, we are lowering our issue-level rating on the company's first-lien credit facilities to 'B-' from 'B'. The '3' recovery rating remains unchanged, indicating our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default. We are also lowering our issue-level rating on the company's second-lien credit facilities to 'CCC' from 'CCC+'. The '6' recovery rating remains unchanged, indicating our expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a default. The stable outlook

...- ProAmpac PG Intermediate LLC's (ProAmpac) operating performance has been weaker than we expected, with declining sales volumes and higher operating costs attributing to its elevated credit metrics. - Therefore, we are downgrading ProAmpac to 'B-' from 'B'. - At the same time, we are lowering our issue-level rating on the company's first-lien credit facilities to 'B-' from 'B'. The '3' recovery rating remains unchanged, indicating our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default. - We are also lowering our issue-level rating on the company's second-lien credit facilities to '###' from '###+'. The '6' recovery rating remains unchanged, indicating our expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a default. - The stable outlook reflects our expectation that ProAmpac will continue to generate positive free cash flow and maintain ample liquidity under its revolving credit facility over the next 12 months,...

Research Update