OREANDA-NEWS. Fitch Ratings says that JIC Investment Co., Ltd.'s (JIC) acquisition of glass packaging manufacturer SGD Group SAS (SGD; B-/Stable) has no immediate impact on the ratings.

The ratings are based on the standalone credit profile of SGD and are not impacted by its ownership. We do not expect this to change following the takeover by JIC, which like SGD's current owner, Oaktree Capital Management, L. P., is also a financial investor. JIC signed a share purchase agreement to acquire all shares in SGD, subject to competition and regulatory approvals. We expect final approvals by September 2016.

We assume that SGD's business strategy will remain broadly unchanged, given JIC's proclaimed support for SGD's substantial investments and the investor's long investment horizon, which corresponds to SGD's long-term customer relationships and capex plans. JIC is a wholly-owned subsidiary of China Jianyin Investment Limited, which had invested CNY15.41bn in 30 companies at end-2014. Its investments span logistics, automotive, food and engineering companies in China and Europe.

Fitch has limited visibility on the potential new capital structure, and the ratings are dependent on receipt of further information. An improvement of credit metrics, following the redemption of SGD's EUR350m senior secured notes due 2019, could result in an upgrade of the ratings. JIC plans to redeem the bonds in full on completion of the acquisition. SGD can also call the notes at 102.813% until 14 April 2017, or must offer a change of control settlement at 101%, if SGD's debt/ETBIDA ratio is above 4.75x within 60 days of completion.