W/S Packaging Holdings Inc. Downgraded To 'CCC', Outlook Negative; Debt Rating Lowered To 'CCC+'

W/S Packaging Holdings Inc. has reported much weaker than expected operating performance for the quarter ended Dec. 31, 2015, and the resultant negative free operating cash flow has materially decreased the company's cash position. It is highly likely that the company will be unable to service its debt obligations if it is unable to improve its free cash flow and obtain an amendment to its credit agreement to address tighter financial covenants in the next few quarters. As a result, we are lowering the corporate credit rating on W/S Packaging to 'CCC' from 'B'. At the same time, we are lowering the rating on subsidiary W/S Packaging Group Inc.'s senior secured credit facility to 'CCC+' from 'B+'. The negative outlook

...+ W/S Packaging Holdings Inc. has reported much weaker than expected operating performance for the quarter ended Dec. 31, 2015, and the resultant negative free operating cash flow has materially decreased the company's cash position. + It is highly likely that the company will be unable to service its debt obligations if it is unable to improve its free cash flow and obtain an amendment to its credit agreement to address tighter financial covenants in the next few quarters. + As a result, we are lowering the corporate credit rating on W/S Packaging to '###' from 'B'. At the same time, we are lowering the rating on subsidiary W/S Packaging Group Inc.'s senior secured credit facility to '###+' from 'B+'. + The negative outlook reflects our expectation that a continued trend of weaker earnings will place untenable pressure on W/S Packaging's liquidity over the next 12 months and increase the likelihood that the company could breach the covenant on its credit facility if it is unable to amend...

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