S&P trims Ardagh Group

S&P said it lowered its ratings on Ardagh Group SA and its senior secured debt to B- from B and its unsecured notes to CCC from CCC+. It also downgraded the deeply subordinated $1.7 billion toggle notes issued by ARD Finance SA to CCC from CCC+, the senior secured notes issued by Ardagh Metal Packaging (AMP) to B+ from BB- and AMP's senior unsecured notes to B- from B.

“We expect negative FOCF for 2024 and 2025 and forecast no material improvement in the next few years. Ardagh generated negative adjusted FOCF in the past few years and positive adjusted FOCF is unlikely in the next three years as EBITDA improvements and capex reductions will likely be offset by rising interest expense (assuming a successful refinancing of the notes due in April 2025 and August 2026).

“We continue to view the group's FOCF as insufficient compared to total adjusted debt exceeding $12.8 billion,” S&P said in a press release.

The outlook is negative.

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