On December 9, 2020, S&P Global ratings lowered its rating on Mauser Packaging Solutions to B- from B. Debt leverage will likely remain very high over the next 12 months, according to the ratings agency. Moreover, Mauser had very high leverage of about 9x entering the coronavirus pandemic, partially due to sponsor dividends and large acquisitions in 2017 and 2018, a financial policy S&P Global considers a very aggressive. However, the ratings agency expects adjusted debt to EBITDA of 11x-12x in 2020 and 9x-11x in 2021. Still, service of the Company’s onerous $5.7 billion S&P Global Ratings-adjusted debt load, which requires more than $300 million annually, prevents the Company from generating enough free operating cash flow to repay a significant amount of debt, despite generally low capital expenditure and working capital requirements, the ratings agency notes.

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