Moody's: Ardagh view positive

Moody's Investors Service said it changed the outlook to positive from stable and affirmed Ardagh Glass Group's corporate family rating at B2.

"The positive outlook reflects Moody's expectation that Ardagh can sustain the strong turnaround recorded in 2007 and further improve profitability and credit metrics in 2008 and beyond," Rainer Neidnig, analyst at Moody's, said in a written statement.

"This action is in particular based on our view that Ardagh will continue to benefit from an ongoing balanced supply and demand situation for glass containers in Europe, the successful integration of the Rexam activities acquired in 2007 and a recently initiated efficiency enhancement program," Neidnig said.

The rating also considers account risks from rising input costs, weak financial profile with high leverage, high capital spending requirements for growth projects and efficiency improvements, as well as a high customer concentration, the agency noted.

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