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Moody’s Ratings downgraded Mondi to Baa2 from Baa1, citing sustained weak operating performance amid a prolonged downturn in global paper and packaging markets and credit metrics that remain materially weaker than levels appropriate for the previous rating. Moody’s also downgraded the company’s senior unsecured notes to Baa2 from Baa1 and changed the outlook to Stable from Negative.
For the 12 months ended June 2026, Moody’s-adjusted gross debt/EBITDA was about 3.7x versus roughly 2.0x under the previous rating guidance, while retained cash flow/net debt was about 19.9%, below the prior 30% guidance. EBITDA margin fell to approximately 10.1%, well below historical levels and expectations for a Baa1 rating.
Free cash flow remained weak, turning negative in both 2024 and 2025. It became positive in the 12 months through June 2026, helped by working-capital inflows, lower capital spending and reduced shareholder distributions.
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