SADDLE BROOK, N.J., Jan. 18, 2001 (PRIMEZONE) -- Sealed Air Corporation (NYSE:SEE) stated today that Moody's has reaffirmed its investment grade Baa3 issuer and senior debt credit ratings. Moody's has, however, made the decision to change its outlook on the Company's rating from positive to negative. Moody's cites that "the outlook change reflects the mounting asbestos-related legal problems of W. R. Grace ("Grace"), former owner of the Cryovac activity of Sealed Air, and the increased risk that Sealed Air - in spite of substantial legal defenses - could become a target of Grace legal creditors in the future." While Sealed Air respects the rating agency's independence and the important services it provides, Sealed Air does not agree that the outlook should have been changed to negative.
Sealed Air believes that close examination of the details of the Cryovac transaction and of the applicable legal principles demonstrates that asbestos-related claims against Sealed Air are without legal merit. Neither Sealed Air nor Cryovac has ever produced or sold any asbestos-related products. Sealed Air has not paid any asbestos-related claims and believes it is well positioned to defend itself successfully to the extent any asbestos-related claims are made against it.
Sealed Air's fundamentals remain strong. The Company's sales and cash flow continue to increase, and there has been no change in the strength of Sealed Air's financial position. In fact, Sealed Air continues to demonstrate a strong credit profile. For the twelve months ended September 30, 2000, its ratio of total debt to EBITDA was 1.5x and its ratio of EBITDA to interest expense plus preferred dividends was 5.4x.
The Company does not expect Moody's change in outlook to affect its liquidity or change its cost of borrowing in any significant way.
Sealed Air is a leading global manufacturer of a wide range of food, protective and specialty packaging materials and systems. To view the Company's latest financial news online via the World Wide Web, visit http://www.cfonews.com/see.
Certain statements made by the Company in this press release are forward-looking statements. These statements include comments as to the Company's beliefs and expectations as to future events and trends affecting the Company's business. These forward-looking statements are based upon management's current expectations concerning future events and trends and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors stated under the heading "Forward-Looking Statements" in Management's Discussion and Analysis of Results of Operations and Financial Condition, which appears in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, as well as other factors, could cause actual results to differ materially from such statements.