Dubai-based flexible packaging film producer Taghleef Industries Holdco Ltd. has outperformed our expectations on cash generation, resulting in lower adjusted debt and stronger credit metrics than in our forecasts. In addition, the group has successfully repriced at lower interest rates its €235 million and $55 million term loan B, which will further improve forecast credit metrics. We are therefore raising our long-term rating on Taghleef Industries Holdco to 'BB-' from 'B+'. The outlook is positive, reflecting our view that there is at least a one-in-three chance of a further upgrade in the next year if the company is able to successfully execute its growth investment program, while maintaining materially positive discretionary cash flow generation within a challenging operating environment. On
