Ratings agency Moody’s is looking for “further evidence” that Irish packaging giant Smurfit Kappa can sustain a lower level of leverage after the company raised €660m in equity from shareholders. Smurfit Kappa, whose chief executive is Tony Smurfit, raised the equity last week to accelerate its growth strategy. “The company’s commitment to reduce and sustain leverage at a consistently lower level may lead to further positive rating action,” said Moody’s. Smurfit Kappa generated revenue of just over €9bn last year and a pre-exceptional operating profit of €1.06bn. “The continued development of e-commerce and the increasing demand for sustainable, paper-based packaging are presenting opportunities for Smurfit Kappa,” he said.

Source: Irish Independent November 28, 2020 02:03 UTC