Fitch cuts Ardagh Metal, rates notes BB

Fitch Ratings said it downgraded Ardagh Metal Packaging SA's long-term issuer default rating to B from B+ and assigned its upcoming offering of senior secured notes an expected senior secured rating of BB with an RR1 recovery rating.

Prospect News reported the company’s subsidiaries Ardagh Metal Packaging Finance USA LLC and Ardagh Metal Packaging Finance plc will sell $600 million of five-year senior secured green notes.

“The downgrade reflects AMP's planned issuance of additional debt and follows the downgrade of its parent Ardagh Group SA. (Ardagh; B/stable). The planned issuance will lift Ardagh's consolidated funds flow from operation (FFO) gross leverage outside its previous B+ sensitivities until 2025. AMP's IDR is aligned with and based on the consolidated credit profile of Ardagh. This reflects open legal and access and control linkages between AMP and Ardagh under our parent and subsidiary linkage (PSL) rating criteria,” Fitch said in a press release.

AMP also plans to issue perpetual preferred shares of up to €250 million and senior secured debt of up to $700 million. Proceeds will primarily fund its capital expenditures program.

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