Moody's downgrades Mondi to Baa2 on weak credit metrics

Moody's Ratings has cut Mondi Plc's rating to Baa2 from Baa1, citing weakened earnings and cash flow through a prolonged paper and packaging downturn. The agency revised the outlook to stable from negative, noting adjusted gross debt/EBITDA of about 3.7x against prior guidance of around 2.0x. Mondi held about EUR 154m in cash and an undrawn EUR 1.0bn revolving credit facility at 30 June 2026.

Why this mattersA downgrade at a core containerboard and kraft paper producer signals sector-wide margin pressure and could raise Mondi's future funding costs.

• Moody's cut Mondi Plc's rating to Baa2 from Baa1 on 22 September 2026
• Outlook revised to stable from negative
• Moody's-adjusted gross debt/EBITDA at about 3.7x, versus prior guidance of around 2.0x
• Retained cash flow to net debt fell to about 19.9%, below the 30% prior threshold
• EBITDA margin declined to about 10.1%
• Mondi held about EUR 154m in cash and an undrawn EUR 1.0bn committed revolving credit facility at 30 June 2026

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