S&P gives Ardagh Glass notes CCC+

Standard & Poor's said it assigned its CCC+ long-term senior unsecured debt rating to €310 million in proposed guaranteed senior notes and senior toggle notes maturing 2017 and issued by Ardagh Glass Finance plc, an indirectly wholly owned subsidiary of Ardagh Glass Holdings Ltd. (B/positive).

The proceeds will be used to finance a portion of Ardagh's acquisition of Rexam plc's glass container manufacturing division, the agency said, adding that the proposed notes are rated two notches lower than the corporate credit rating on Ardagh due to their structural and contractual subordination.

According to S&P, the ratings on Ardagh and related entities reflect its highly leveraged financial risk profile, the weak profitability of its U.K. operations, although this is set to improve due to better trading conditions and its exposure to high and volatile energy prices.

These factors are mitigated by the group's leading positions in several European glass packaging markets after the acquisition of Rexam's glass division and its relatively recession-resistant products, the agency said.

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