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, 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, longstanding relationships with customers, and good profitability. In the 12 months to June 30, 2008, SIG generated sales of €1.24 billion. SIG's highly leveraged financial profile reflects the leveraged buyout (LBO) of the company in May 2007 by Rank Group Holdings Limited (Rank), an investment company based in New Zealand. On June
