Ardagh Glass has had its credit ratings cut because of growing competition & margin pressure in the UK,writes the Irish Times. Ratings agency Standard & Poor's (S&P) downgraded its long-term credit rating on Ardagh's long-term corporate credit & on its subordinated bond & pay-in-kind (PIK) notes. The agency said the outlook for the ratings, all of which are below investment grade or 'junk',remains negative. 'The downgrade reflects the ongoing difficult operating environment in Ardagh's main UK market, where the group's cost base has been affected by unprecedented high & volatile natural gas prices,' said S&P's credit analyst V Braithwaite. She noted that Ardagh has no hedging in place & is thus facing margin pressure that is set to intensify this year with the full opening of Quinn's new £364m glass plant in Chester. The impact of Quinn Group's investment was also highlighted last week when another rating agency, Moodys, said it was considering a downgrade of Ardagh's ratings.
