Fitch: Stable Outlook for Australasia Paper and Packaging Manufacturing Sectors.Business Editors BRISBANE, Australia & NEW YORK--(BUSINESS WIRE)--Sept. 17, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. , the international rating agency, says in a new report that it expects the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of the Australasian paper and packaging manufacturing sectors to remain stable during the next two to three years. "Both sectors, locally, have efficient, concentrated and stable structures following consolidation by the major players in recent years," said Philip Miall, Associate Director, Industrials, Fitch. However, Fitch notes the trend in recent years among the major participants to look for growth internationally in view of the limited growth opportunities in the local market. For instance, Amcor has become a global leader in PET and flexibles packaging, while PaperlinX is set to become the world's third largest paper merchant upon the acquisition of Buhrmann NV's paper merchanting division. Performance of their offshore operations will also be an important consideration in the credit outlook for these companies: earnings accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the may be slower than expected if weakness in global markets continues, however these companies will be well placed to benefit from a sustained global recovery. The impact of the recent strengthening in the Australian and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. currencies is also considered, with the agency reaching the following conclusions: -- In the local markets, this has mainly affected the printing and writing paper segment of the broader paper industry. Import competition for printing and writing papers, which have the highest level of imports of the various industry segments, has intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: during 2003 as a result of the stronger local currencies. -- At the corporate level, earnings growth for those companies with sizeable offshore operations / exports (for instance Amcor, PaperlinX and Carter Holt Harvey Carter Holt Harvey is an Australasian forest products company, with significant interests in wood products, pulp, paper and packaging. The company employs approximately 10,500 people across Australasia. ) are likely to be curtailed if the recent currency strength is sustained. The report, entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Paper and Packaging Manufacturing in Australasia" can be found on the agency's web sites www.fitchratings.com.au, and will also be available on www.fitchratings.com, under Corporates/Special Reports. |
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