Moody's assigns Baa3 issuer rating to WestRock; stable outlook
06/07/2015 13:07

Moody's Investors Service assigned a Baa3 issuer rating to WestRock Company, the newly formed global packaging company resulting from the combination of Rock-Tenn Company (Baa3 stable) and MeadWestvaco Corporation (MWV, Baa3 stable). WestRock's new bank facilities (unrated) and the existing Rock-Tenn and MWV senior unsecured bonds are cross guaranteed (see debt list for ratings). The rating outlook is stable.

"WestRock's Baa3 issuer rating is influenced by its significant scale, strong market positions across most of the primary corrugated and consumer packaging paper-based substrates and expected adjusted leverage of 2.5 -- 3 times", said Ed Sustar, vice president and senior analyst with Moody's.

WestRock has first or second market positions across most of the primary packaging substrates of linerboard, bleached paperboard, coated natural kraft and coated recycled board, providing it with a broad menu of products to offer to a diversified customer base.