Moody’s gives Baa2 to Amcor notes

Moody's Investors Service said it assigned a Baa2 rating to the $500 million senior unsecured notes issued by Amcor Finance (USA), Inc.

The notes are guaranteed by Amcor Ltd. and Amcor UK Finance plc.

Proceeds will be used to repay outstanding indebtedness under Amcor's €750 million European syndicated facility agreement and $600 million U.S. commercial paper program and for other general corporate purposes.

Moody’s said the Baa2 rating and stable outlook primarily reflects Amcor's globally diversified operations, strong market positions, and strategic customer relationships with a number of on-site and near-site facilities.

Amcor has the contractual ability to pass on changes in raw material costs, and it sells over 90% of its products to customers in the food, beverage, healthcare, and tobacco packaging industries, which are all relatively stable.

Balancing these strengths are the challenges associated with the highly competitive nature of the global packaging industry, the agency explained.

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