Fitch Ratings announced on April 2, 2025, a downgrade of Ardagh Group S.A.'s Long-Term Issuer Default Rating (IDR) to 'CCC-' from 'CCC', placing it on Rating Watch Negative before withdrawing the rating. This action reflects the parent company's continued underperformance, unsustainable debt structure, and poor liquidity in anticipation of approximately $2.5 billion in debt maturities in August 2026. Fitch views the parent's proposed bondholder negotiations as a distressed debt exchange.
In response to the parent's situation, Fitch placed Ardagh Metal Packaging S.A.'s (AMBP) Long-Term IDR of 'B-' on Rating Watch Evolving (RWE). This RWE signifies that AMBP's rating could potentially be upgraded to its 'b' Standalone Credit Profile if Ardagh Group loses control of AMBP following its proposed capital restructuring. Conversely, a downgrade is possible if the parent's restructuring fails and negatively impacts AMBP.
Fitch noted that AMBP's debt financing is separate from Ardagh Group's, lacking cross-guarantees or cross-default provisions, and features separate security and ring-fence packages. This structural separation allows AMBP's IDR to be two notches above that of its parent. However, the RWE highlights the ongoing uncertainty surrounding the group's shareholding structure and its potential implications for AMBP.
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