S&P ups Mastellone Hermanos to CCC+

Standard & Poor's said it raised its corporate credit rating on Mastellone Hermanos SA to CCC+ from CCC and the issue-level rating on the company's senior unsecured notes to CCC+ from CCC.

The outlook on the corporate credit rating is negative.

S&P said the upgrade follows the improvement in Mastellone's liquidity that stems from positive market dynamics and the hike in domestic average prices for dairy products, which the government tightly controls, during the first half of 2013.

High international prices of powdered milk, well above minimum long-term sustainable levels, together with the company's ability to address some delays in the adjustment of domestic retail prices, allowed Mastellone to improve its results and cash flow generation. Under this scenario, S&P said it believes the company will be able to meet all of its short-term funding requirements with limited need of refinancing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.