Fitch affirms Amcor

Fitch Ratings said it affirmed Amcor Ltd.'s long-term issuer default rating at BBB+.

The outlook is stable.

The agency also affirmed Amcor's senior unsecured rating and the ratings on the company's outstanding €550 million 4.625% senior notes due 2019 and €300 million 2.75% senior notes due 2023 at BBB+.

The affirmation follows Amcor's announcement of a merger with Bemis Co., Inc. in an all-stock deal that will further strengthen Amcor's position as the global leader in flexible and rigid plastic consumer packaging with combined sales of $13 billion based on 2017 financials, Fitch said.

The deal will also allow Amcor to gain scale quickly in the North American flexible-packaging market, where it had intended to grow from a relatively low base, the agency added.

However, Amcor's relatively high leverage remains a constraint for its rating, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.