U.S.-based W/S Packaging Holdings Inc.'s operating performance will likely remain weak and in our assessment the step-downs in its covenants will lead to thin headroom on its maximum consolidated leverage ratio covenant through the second half of fiscal 2015 and fiscal 2016. We are revising our outlook on W/S Packaging to negative from stable, and affirming all ratings on the company, including our 'B' corporate credit rating. At the same time, we are revising our liquidity profile assessment to "less than adequate" from "adequate". The negative outlook reflects our assessment that W/S Packaging may not be able to improve EBITDA and decrease leverage sufficiently over the next 12 months, resulting in constrained liquidity and tight covenant headroom for the next
