OREANDA-NEWS. S&P Global Ratings today assigned its 'BB' issue-level rating, with a recovery rating of '3', to Crown European Holdings S. A.'s, a subsidiary of Crown Holdings Inc., proposed €310 million senior unsecured notes due 2024. The '3' recovery rating indicates our expectation for meaningful (50%-70%; in the upper half of the range) recovery for lenders in the event of a payment default.

In addition, we assigned a 'BB-' issue rating, with a recovery rating of '5', to Crown Americas LLC and Crown Americas Capital Corp. IV's, subsidiaries of Crown Holdings Inc., proposed $350 million senior unsecured notes due 2026. The '5' recovery rating indicates indicating our expectation of modest (10%-30%; lower end of the range) recovery in the event of a default.

The company intends to use the net proceeds of the offering, along with other available funds, to repay a portion of its term loan facility, to pay related fees and expenses associated with offering of the notes and for general corporate purposes.

With revenue of about $8.8 billion in 2015, Philadelphia-based Crown Holdings Inc. (Crown) is a metal container manufacturer producing steel and aluminum cans, metals caps, and closures. Crown's product lines serve a wide variety of end markets including food, beverage, household, and other consumer products.

We base our 'BB' corporate credit rating on Crown on our assessment of a satisfactory business risk and aggressive financial risk profile for the company. For our complete corporate credit rating rationale, please see our research update on Crown Holdings Inc. published Oct. 8, 2014, on RatingsDirect.