OREANDA-NEWS. S&P Global Ratings today assigned its 'BBB' issue-level rating to Neenah, Wis.-based Bemis Co. Inc.'s proposed offering of senior unsecured notes due 2026. It is our understanding that the company intends to issue no more than $300 million in notes. Bemis will use the note proceeds largely to repay a portion of its commercial paper borrowings. The existing ratings on Bemis, including the 'BBB' long-term corporate credit rating and 'A-2' short-term rating, are unchanged. The outlook is stable.

The ratings on Bemis reflect its satisfactory business position as a leading producer of value-added flexible packaging and its intermediate financial risk profile. The majority of sales are to the food industry, resulting in considerable stability of demand through economic cycles. We expect good cash-generating ability and management's commitment to maintaining a financial risk profile consistent with the current ratings, while pursuing a disciplined growth strategy and shareholder rewards. We expect Bemis will continue to maintain its funds from operations to total adjusted debt in the 28% to 40% range for the current ratings.

For the latest full corporate credit rating rationale, see S&P Global Ratings' summary analysis on Bemis published March 31, 2015.