Ardagh Rating Cut to CCC- by S&P on Looming Distressed Exchange

Ardagh Group SA was downgraded deep into junk territory by S&P Global Ratings, which cited expectations that the packaging firm will continue to burn through cash and struggle with its debts.

The move Thursday comes after the company’s announcement last week that it struck a new-loan deal with Apollo Global Management. The funds will be used to repay Ardagh’s notes that are coming due next year, and the deal allows Apollo to swap unsecured and payment-in-kind notes for senior loans.

The ratings firm cut Ardagh Group’s credit rating three notches to CCC-, 9 steps into junk territory, saying it ...