Leading U.S. manufacturer of rigid and flexible packaging Improved earnings and cash flow generation Serves mostly stable end markets Highly leveraged financial profile Potential acquisitions limit improvement in financial profile Aggressive financial policies The stable outlook reflects our expectation that moderate free cash generation will result in gradual deleveraging. However, if economic conditions and consumer demand are somewhat better than we anticipate, and Berry doesn't undertake any leveraging acquisitions, we believe credit metrics could strengthen sufficiently to warrant a modest upgrade in the next two years. We could lower the ratings if the company's liquidity deteriorates or if earnings and cash flow decline unexpectedly because of weaker demand for its products or challenges related to passing through raw material costs.
