S&P places DS Smith on positive watch

S&P said it placed DS Smith plc’s BBB- issuer and senior debt ratings on CreditWatch with positive implications.

“The CreditWatch placement reflects the anticipated acquisition of British packaging business DS Smith plc (DSS) by the higher-rated International Paper Co. We believe this transaction could lead us to upgrade DSS by one notch. The acquisition is expected to close by the fourth quarter of 2024,” S&P said in a press release.

The agency said it plans to resolve the positive watch once the deal closes.

“At this point, we could raise the ratings by one notch depending on the amount of outstanding debt following the acquisition and our determination of DSS' strategic importance within International Paper's group of companies,” S&P said.

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