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 volatile raw material prices, and relatively high capital intensity. Nevertheless, Standard&Poor's Ratings Services considers SIG's business risk profile to be satisfactory because of the group's 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. In the 12 months to March 31, 2008, SIG generated sales of €1.24 billion pro forma the disposal of its Beverages segment, completed in April 2008. SIG's financial profile is highly leveraged. This reflects the leveraged buyout (LBO) of the company
