NEW YORK (Standard & Poor's) July 1, 2004-- Standard & Poor's Ratings Services said today that Solo Cup Co.'s (B+/Stable/--) announcement that pro forma operating income for the first quarter of 2004 was substantially lower than in the same period in 2003 has no effect on the company's credit rating or outlook. Following the recently completed acquisition of SF Holdings Group Inc. and its subsidiaries (including Sweetheart Cup Co. Inc.), pro forma operating income in the first quarter of 2004 was adversely affected by higher raw-material costs (paper and plastic resins), and operating issues related to the integration of the acquisition, in addition to being a seasonally weak quarter. Because of the very aggressive debt leverage and disappointing earnings, the...
Companies mentioned in this report are: Solo Cup Co.,SF Holdings Group Inc.,Sweetheart Cup Co. Inc.
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