Moody's rates Ardagh Glass notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 (LGD2, 23%) rating to Ardagh Glass Finance plc's proposed €300 million senior secured notes due 2016 and affirmed Ardagh Glass Group plc's B2 corporate family rating and the ratings assigned to the group's existing bonds, including Ardagh Glass's Caa1 €126.25 million senior PIK notes due 2015, Ardagh Glass Finance's €310 million senior notes due 2017 and Ardagh Glass Finance BV's B3 €175 million senior notes due 2013.

The outlook is stable.

Ardagh plans to apply the proceeds to refinance €150 million of existing senior secured term loans and to repay outstanding amounts under the group's senior secured revolving credit facilities. Moody's said the purpose of the proposed bond issuance is to increase the group's liquidity headroom for general corporate purposes and to proactively address future bank debt maturities with longer-term capital markets debt.

The agency said the affirmation is based on the expectation of a gradual recovery in earnings following a weak first quarter, which was impacted by lower volume and substantial restructuring expenses, and a stabilization of earnings in the second half of 2009 compared to 2008.

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