Mondi assessing potential investments after S&P upgrades

Packaging and paper company Mondi is considering its options to expand the Stambolijski mill in Bulgaria.

According to various reports, the packaging and paper group is evaluating potential investments at its cost-efficient Bulgarian mill, although according to the company no decision had yet been taken.

Shares in Mondi were 2.3% higher at 1,950.50 pence in London on Friday and 4.0% higher at ZAR334.08 in Johannesburg trading.

Earlier, its shares had jumped by 4% after S&P Global Ratings upgraded its rating for the company's long-term debt from BBB to BBB+ with a 'stable' outlook.

Commenting on the announcement, the company's finance chief, Andrew King said: "We are pleased to confirm that S&P has upgraded our credit rating in recognition of the group’s ongoing financial strength and robust business model."