standard & Poor's Ratings Services said it has placed all the ratings, including the 'B+' corporate credit rating, on Chicago-based flexible packaging company, Packaging Dynamics Corp on negative watch.
The ratings agency said the negative watch status reflects its view that as a result of the weakening US economy, the company will be challenged to realize further sales price increases and margin improvements over the next several quarters.
The company had improved credit measures over the past several quarters because of higher pricing and some cost-reduction benefits. Despite the recent improvement, metrics remain weaker than S&P's prior expectations, which the ratings agency said it had factored into the 'B+' rating.
