S&P: Global Dairy, notes B

Standard & Poor's said it assigned a B long-term corporate credit rating to Global Dairy Holdings Ltd., along with a B rating to the company's proposed senior notes.

The proceeds will be used for capital expenditure, working capital and general corporate purposes.

The outlook is stable.

The rating reflects the company's relatively smaller scale compared to its peers, the highly fragmented and competitive dairy market and the company's aggressive growth strategy to expand upstream into dairy farm operations, S&P said.

These weaknesses are partly tempered by its good profitability and dairy-farming location, which benefits from a favorable climate and vast fertile grasslands, the agency said.

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