Consumer and industrial packaging company Sonoco Products Co.'s credit measures have weakened in the past year, and we believe it is unlikely they will strengthen meaningfully during the next two years. We are lowering our issuer credit rating on the company by one notch to 'BBB'. The negative outlook reflects a 1-in-3 chance for lower ratings, as macroeconomic uncertainty could keep organic growth rates low and credit measures pressured despite partial mitigation from portfolio actions and better operating efficiency. Its merger and acquisition (M&A) spending (averaging $320 million annually in the past three years, much of it debt-funded) and the increase in its lease obligations raised Sonoco's adjusted debt to EBITDA to 2.7x as of Dec. 31, 2019, from 2.4x
