Ardagh - Credit Rating Upgrade Likely

Credit rating agency Standard & Poors (SP) has indicated a likely upgrade of Ardagh Glass following its Eur 660M buyout of the European glass unit of Rexam. In a note on 13 March 2007, SP said it was reviewing Ardagh's "B" corporate credit rating "with positive implications" in light of the transaction. Its move is in contract to rival agency Moody's, which put the firm on review for a possible downgrade. SP said the deal was subject to competition authority approval in Germany & Poland but cited its "likely positive effects" on Ardagh's credit profile. The agency said the enlarged Ardagh will become one of the biggest glass packaging manufacturers in Europe with annual reviews of around Eur 1.25BN.