S&P drops Ardagh

Standard & Poor's said it lowered its long-term corporate credit ratings to B- from B on Ardagh Glass Group plc and related entity Ardagh Glass Holdings Ltd.

At the same time, the ratings on the group's payment-in-kind notes and related entity Ardagh Glass BV's subordinated bond were lowered to CCC from CCC+.

The outlook remains negative.

S&P said that the downgrade reflects the ongoing difficult operating environment in Ardagh's main U.K. market, where the group's cost base has been affected by unprecedentedly high and volatile natural gas prices, adding that Ardagh's margins have come under pressure as a result.

The agency added that the ratings on Ardagh reflect the group's aggressive financial profile, limited diversification and high dependence on the U.K. food and beverages market.

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