Industry Report Card: Global Packaging Defaults Could Rise In 2008, As Liquidity Tightens For Speculative-Grade Issuers Dec 07

  • ID: 1793589
  • December 2007
  • Region: Global
  • Standard & Poors
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  • AEP Industries Inc.
  • Bemis Co. Inc.
  • Exopack Holding Corp.
  • Kleopatra Lux 1 S.a.r.l
  • Portola Packaging Inc.
  • Solo Cup Co.
  • MORE

Since the tightening of the credit markets began some months ago, liquidity concerns remain high in the global packaging sector, given that 65% of rated companies are in the 'B' and 'CCC' categories. Standard & Poor's Ratings Services expects tight liquidity and potential covenant violations to be the biggest stumbling blocks in 2008, and defaults likely will rise. A mitigating factor is that some companies were able to refinance their credit facilities with covenant-lite features, owing to the tremendous liquidity in the market before the credit squeeze began. This could delay their need to seek amendments, despite deterioration in operating performance. One positive note is that most packaging companies refinanced and pushed out debt maturities so that a relatively small...

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Research Type: Commentary
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- Avery Dennison Corp.
- Bemis Co. Inc.
- Owens-Illinois Inc.
- Crown Holdings Inc.
- Viskase Cos. Inc.
- Atlantis Plastics Inc.
- Sonoco Products Co.
- Silgan Holdings Inc.
- Sealed Air Corp.
- Amcor Ltd.
- Rexam PLC
- Portola Packaging Inc.
- Tekni-Plex Inc.
- BWAY Corp.
- Impress Holdings B.V.
- Pliant Corp.
- AEP Industries Inc.
- Graham Packaging Holdings Co.
- Ball Corp.
- Consolidated Container Co. LLC
- Pactiv Corp.
- IFCO Systems N.V.
- Solo Cup Co.
- Plastipak Holdings Inc.
- Kleopatra Lux 1 S.a.r.l
- Constar International Inc.
- Clondalkin Industries B.V.
- Intertape Polymer Group Inc.
- Ardagh Packaging Group Ltd.
- Gerresheimer AG
- Pregis Corp.
- Yioula Glassworks S.A.
- Exopack Holding Corp.
- Multi Packaging Solutions Inc.
- Fort Dearborn Co.
- Treofan Holdings GmbH
- Berry Plastics Corp.
- Consol Holdings Ltd.
- Tegrant Corp.

Note: Product cover images may vary from those shown
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