Paper, Packaging Firms Likely To Turn Their Attention To New Projects: Moody's
European paper and packaging firms are likely to turn their attention to new investment prospects in the coming years, following a prolonged period of deleveraging, Moody's Investors Service has said via a new report.
The report, After deleveraging, companies are likely to focus on new investment prospects, claims that most European pulp, paper and paper-packaging companies with Ba and Baa ratings have 'built up financial flexibility' that will enable them to 'step up' capital investment in additional projects, without impacting their credit quality.
These include Smurfit Kappa Group plc, ENCE Energia y Celulosa, SA, Mondi Plc, Metsä Board Corporation, UPMKymmene and Progroup AG.
'We think that M&A activity will continue to be a less attractive proposition because valuations are currently high and most market segments are already quite concentrated,' Moody's wrote in the report.
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