S&P Global ratings revised Ball Corp.'s outlook to stable from negative, saying that the company met much of its synergy goals related to its Rexam acquisition in 2016 and reduced its debt leverage in 2017.
The U.S. metal packaging company's financial risk assessment was also revised to significant from aggressive and its corporate credit rating was affirmed at BB+.
The rating agency said the company has already reached half of its goal of obtaining $300 million of synergies within three and a half years from its Rexam acquisition.
"To this point, the company has realized over $150 million in synergies pertaining to general and administrative expenses, sourcing, and footprint optimization," S&P said.
Ball's adjusted debt-to-EBITDA ratio improved to approximately 4.3x at the end of 2017 from 5.9x at the end of 2016, driven by earnings growth and debt reduction, according to the rating agency.
S&P forecasts Ball's debt leverage to be reduced to 3.7x by the end of 2018 as the company continues to realize cost synergies and operational improvement.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.