Fitch assigns Canpack, notes BB

Fitch Ratings said it assigned Canpack SA a first-time BB long-term issuer default rating and also gave a BB instrument rating to the company's senior unsecured debt.

“The rating of Canpack reflects the balance of its continuing profitable growth, good diversification and strong sector fundamentals with higher-than-average free cash flow (FCF) volatility,” the agency said in a press release.

However, the rating is constrained by its smaller scale and higher profitability volatility than sector peers', which is worsened by highly negative FCF in 2021-2022, Fitch said.

The outlook is stable, which reflects expected sound operating performance supported by growing demand for its largest beverage can business, the agency said.

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