S&P gives BB+ to Dairy Farmers preferreds

Standard & Poor’s said it assigned its BB+ rating to Dairy Farmers of America Inc.’s proposed $75 million series B cumulative preferred equity securities.

“We continue to believe DFA benefits from good regional geographic diversity, significant economies of scale, and extensive distribution capabilities, with an ability to pass through price increases,” S&P said in a news release.

“We expect leverage to be close to 4.0x and funds from operations to debt to be between 18% and 24% over the next two years, compared with 2.6x and 31%, respectively, in 2014,” the agency said.

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