Ratings Movers: Silgan Gets Boost/Caribbean Pushes Leverage.

Moody's Investors Services upgraded Silgan Holdings' bank debt last week. The North American manufacturer of metal and plastic consumer goods packaging products saw its corporate family rating as well as the ratings of its $450 million revolver, $375 million term loan A and $84 million term loan B all raised to Ba2 from Ba3.

The upgrade closely follows Silgan's recent definitive purchase agreement with Amcor Limited to acquire its White Cap closures business. The business is the leading supplier of a range of metal closures to consumer goods packaging companies and had sales of approximately 246 million for the fiscal year ended June 30, 2005.

"Moody's expects that Silgan's acquisition expertise and experience will enable it to integrate the White Cap acquisition without disruption to its existing business," the rating agency stated.

Silgan is also expected to undertake additional acquisitions in a manner consistent with the current ratings, Moody's said, noting that Silgan is expected to operate with adjusted total debt-to-EBITDA levels in the neighborhood of 2.5 to 3.5 times.

Meanwhile, Puerto Rico-based Caribbean Restaurants (CRI), the leading player in the $1 billion Puerto Rican fast-food market and fourth largest franchisee of Burger King Restaurants, was downgraded by Standard & Poor's last week. The rating agency lowered ratings on the company's $30 million revolver and $180 million term loan B to B from B+.

The downgrade reflects CRI's highly leveraged capital structure, the risks of operating in the extremely competitive quick-service restaurant industry, and its regional concentration.

The downgrade also reflects the company's deteriorating cash flow protection measures due to negative operating trends over the past four quarters, S&P said. Total debt-to-EBITDA is expected to increase to more than six times in fiscal 2006, from the mid-five times range in fiscal year 2005. CRI's sponsor, Castle Harlan, acquired the company in July 2004.

CRI's exclusive franchise agreement with Burger King in Puerto Rico, however, somewhat tempers these negative factors, S&P pointed out.

Calls to Silgan and Castle Harlan were not returned by press time.

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