Research Update: Paper Producer Mondi Outlook Revised To Stable On Acquisition Announcement; 'BBB-' Ratings Affirmed Jul 12
- Language: English
- Published: July 2012
The rating on Mondi Group continues to reflect its favorable cost position with a well-invested asset base, leading position in emerging markets, and meaningful geographic and end-market diversity. It also reflects a significantly improved operating and financial performance, which could translate into a higher rating over the near term. These factors are balanced by medium-term risk factors, particularly Mondi's exposure to competitive and cyclical paper and packaging markets. Key business and profitability developments Despite severe cost inflation for key production inputs such as wood, recycled fiber, and energy, Mondi achieved adjusted operating margins for full-year 2010 of about 15% (13.2% in 2009). The improvement came primarily as a result of a broad recovery in demand which, together with industry capacity...
Companies mentioned in this report are: Mondi Group
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