The ratings on Switzerland-based aseptic carton packaging supplier SIG Holding AG (SIG) and related entities are constrained by the company's highly leveraged financial profile and weak coverage ratios, its exposure to volatility in raw-material prices, and relatively high capital intensity. Nevertheless, SIG has a satisfactory business risk profile, derived from its leading positions in the highly consolidated market for aseptic carton packaging, its proven annuity-type business model, long-standing relationships with customers, and good profitability. SIG generated €1.38 billion in revenues in 2007. SIG's financial profile is highly leveraged, reflecting its LBO by Rank Group Holdings Limited, an investment company based in New Zealand, in May 2007. At Dec. 31, 2007, the company reported total debt of €1.55 billion. The group's
