(The following statement was released by the rating agency)
Oct 08 - Overview
-- France-based beauty and cosmetics packaging manufacturer Albea has announced plans to acquire the cosmetics business of U.K.-based consumer packaging group Rexam PLC (BBB-/Stable/A-3) for a cash amount of about $462 million (about EUR356 million).
-- We are assigning our preliminary 'B+' long-term corporate credit rating to Albea Beauty Holdings S.A. (Albea Beauty), Albea's holding company.
-- At the same time, we are assigning our preliminary issue rating of 'B+' to Albea's proposed $650 million equivalent senior secured notes due 2019. Albea Beauty will issue the proposed notes.
-- The stable outlook reflects our view that Albea has the capacity to reduce its debt leverage steadily over the medium term. We base our view on forecast improvements in operating performance.
On Oct. 8, 2012, Standard & Poor's Ratings Services assigned its preliminary 'B+' long-term corporate credit rating to Albea Beauty Holdings S.A. (Albea Beauty). The outlook is stable.