Moody's: Amcor unchanged

Moody's Investors Service said that Amcor Ltd.'s Baa2/prime-2 ratings and stable outlook are unaffected by news that it reached an agreement to acquire Aperio Group for A$238 million.

But, the transaction, which is expected to be debt-funded, reduces the cushion within the rating, the agency said.

Amcor's financial leverage, as indicated by a debt-to-EBITDA ratio in the first half of 2012 was about 3.3x, compared to a maximum tolerance of 3.0x, Moody's said.

The ratings and stable outlook incorporate an expectation of improved financial metrics as Amcor continues to achieve synergy benefits emanating from the substantial Alcan acquisition in 2010, the agency said.

Moody's noted the small size of the announced Aperio transaction relative to Amcor's balance sheet capacity.

But, it results in leverage being higher than previously anticipated, the agency added.

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