Smurfit Kappa, the integrated manufacturer of paper-based packaging products, has welcomed Standard & Poor's upgrading of its credit rating to "BB+" from "BB".

Ian Curley, group chief financial officer, said that the group had set an objective of achieving a BB+ credit rating some years ago and that it welcomes the upgrade by S&P.

“It reflects the group’s progress in materially strengthening its capital profile and transitioning from a leveraged company to a corporate credit. This progress has been made possible by the strong free cash flow generated through a robust operational performance, decisive capital allocation and successful refinancing activities and has expanded the range of strategic and financial options,” Mr Curley added.