Moody's cuts Amcor to Baa2

Moody's Investors Service said it downgraded the issuer and senior unsecured ratings of Amcor Ltd. to Baa2 from Baa1, concluding the review for possible downgrade that began in February. Moody's said it also affirmed Amcor's prime-2 short-term rating, which was not under review.

The outlook is stable.

The downgrade was precipitated by Moody's concerns that ongoing weakness in Amcor's financial profile due to rising input costs, active capital expenditure and high dividend payout was no longer sustainable at the Baa1 rating level, Moody's said.

Despite its strong competitive position, industry-wide challenges and ongoing business restructuring are likely to continue for the foreseeable future, the agency said.

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