Finland-based Huhtamaki improved its leverage last year, reaching S&P Global Ratings-adjusted debt to EBITDA of 2.3x (from 2.4x in 2023), alongside stronger funds from operations (FFO) to debt of 32% (versus 31.4% in 2023). These credit metrics are commensurate with our 'BBB-' rating. We expect Huhtamaki?s credit metrics will further improve this year, on the back of cost improvement programs that will underpin modest EBITDA growth, and that the group's financial policy will sustain the metrics at these stronger levels. We therefore raised our ratings on Huhtamaki and the group's unsecured notes to 'BBB-' from 'BB+'. The outlook is stable, reflecting our expectations that, despite weak economic conditions, Huhtamaki's resilient operating performance and prudent financial policy will uphold credit metrics
