topstockalerts
Sep 17, 2:14 AM
S&P Global Ratings upgraded Packaging Corp. of America to BBB+ from BBB on Wednesday, maintaining a stable outlook, citing the company’s ability to keep adjusted leverage below 2.0x despite its acquisition of Greif’s containerboard business.
PCA completed the
$1.8 billion Greif acquisition in September 2025, financing it with
$1 billion in term loans,
$300 million in cash and
$500 million of unsecured notes. S&P expects PCA’s leverage to reach about 1.7x by year-end 2026 and decline to 1.4x in 2027.
The company has announced three price increases in 2026, including its latest
$140-per-ton increase effective Sept. 1, following previous increases of
$50 and
$70 per ton. S&P expects PCA to generate around
$60 million in annual synergies from the Greif deal, with the benefits fully realized by the end of 2027.
$PKG
