Moody's: Foodcorp on review

Moody's Investors Service said it placed the B2 corporate family rating, B2-PD probability of default rating and the B2/LGD3 senior secured bond ratings of Foodcorp (Proprietary) Ltd. on review with direction uncertain.

The review follows South Africa's competition authorities April 25 approval for Rainbow Chicken Ltd., a South African vertically integrated chicken producer, to acquire 76.1% of Foodcorp through Capitau Investment Management Ltd., effective April 29.

"Our decision to place Foodcorp's ratings on review reflects current uncertainties regarding RCL's plans for Foodcorp from both a financial policy and capital structure perspective," Moody's vice president, senior analyst and lead analyst for Foodcorp Anthony Hill said in a news release.

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