Switzerland-domiciled aseptic carton packaging manufacturer SIG Combibloc Group AG (SIG) outperformed our expectations in 2019. At year-end 2019, its S&P Global Ratings-adjusted debt to EBITDA was 3.0x with funds from operations (FFO) to debt of 26%. We are therefore raising our long-term issuer credit rating on SIG to 'BBB-' from 'BB+'. We are also raising the issue rating on the company's secured debt to 'BBB-' from 'BB+', in line with the issuer credit rating. The stable outlook reflects our expectations that leverage will remain below 3.5x and FFO to debt above 25% over the next 24 months. Our credit measures are also supported by SIG's commitment to maintain an investment grade rating with a leverage target of toward 2.0x in
