Summary: Sonoco Products Co.

Leading market position in paperboard tubes, cores, and packaging. Vertically integrated operations and effective price-cost management. Good geographic diversity and broad end markets under each product offering. A consistent track record of strong free cash flow generation. Management's commitment to maintaining prudent financial policies. Free cash flow to be utilized for potential shareholder rewards and bolt-on acquisitions. Standard&Poor's Ratings Services derives its 'BBB+' corporate credit rating on Sonoco Products Co. from our anchor of 'bbb+', based on our "strong" business risk and "intermediate" financial risk profile assessments for the company. Our 'bbb+' anchor score (rather than 'a-' anchor score) is based on our belief that the company's business risk profile remains on the lower end of the "strong"

...Standard & Poor's Ratings Services derives its '###+' corporate credit rating on Sonoco Products Co. from our anchor of '###+', based on our "strong" business risk and "intermediate" financial risk profile assessments for the company. Our '###+' anchor score (rather than 'a-' anchor score) is based on our belief that the company's business risk profile remains on the lower end of the "strong" category. As the company operates in the packaging industry, the business is exposed to certain business cycles and industrial markets, such as textile, construction, and paper, which exhibit some levels of cyclicality during downturns. Analytical modifiers had no impact on the rating outcome....

Summary