KDP lowers default risk rating on packaging company

KDP advisors on Friday lowered its default risk ranking on Crown Holdings to 1/3 from 2/3, as the firm has befefitted from good volume growth in metal vacuum closures and food cans, as well as from cost reductions and plant efficiencies.

KDP maintains its 'hold' recommendations on Crown's 7.625% senior notes and 6.25% senior notes, while it has discontinued coverage of the L+175 term loan B as Crown recently issued seperate dollar and Euro-denominated term loans, the proceeds of which are being used to pay off its B term loans and senior secured notes.