Debt-rating company Fitch have assigned international paper and packaging group Smurfit Kappa’s prospective secured notes with an expected rating of BB+, which is one step below investment grade.

Fitch Ratings also affirmed Smurfit Kappa's long-term foreign currency Issuer Default Rating (IDR) at ‘BB’.

Fitch said the continuation of the current path in debt reduction by Smurfit Kappa and the improvement in credit metrics could lead to an upgrade.

The Smurfit Kappa group is refinancing its 7.75 per cent senior subordinated notes due 2015 with a new €400 million equivalent dual-tranche senior secured notes offering.