Research Update: Ring Container Technologies Group Upgraded To 'B' On End Market Recovery, Favorable Operating Trends; Outlook Stable

S&P Global Ratings expects U.S. plastic container manufacturer Ring Container Technologies Group LLC's operating trends to improve, supported by a significant recovery of its 35 lb edible-oil containers and growth in its common polyethylene (PET) products. We are therefore raising our issuer credit rating on Ring to 'B' from 'B-'. At the same time, we are assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed $770 million first-lien term loan and $50 million revolving credit facility. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%). The stable outlook reflects our expectation that continued revenue growth from the company's high-density polyethylene (HDPE) and PET segments, coupled with above-average margins, will enable the

...- S&P Global Ratings expects U.S. plastic container manufacturer Ring Container Technologies Group LLC's operating trends to improve, supported by a significant recovery of its 35 lb edible-oil containers and growth in its common polyethylene (PET) products. - We are therefore raising our issuer credit rating on Ring to 'B' from 'B-'. - At the same time, we are assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed $770 million first-lien term loan and $50 million revolving credit facility. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%). - The stable outlook reflects our expectation that continued revenue growth from the company's high-density polyethylene (HDPE) and PET segments, coupled with above-average margins, will enable the company to keep its leverage below 6.5x over the next 12-18 months....

Research Update