S&P rates Nutritek notes B

Standard & Poor's said it assigned a B senior unsecured debt rating to the $50 million loan participation notes issued by Winterhaven BV to fund an intended loan of a similar amount to Nutritek International Corp. (BVI), part of Nutrinvestholding OJSC (B/positive; Russia national scale ruA-).

The bond rating mirrors the long-term corporate credit rating on Nutritek, S&P credit analyst Anton Geyze said in a written statement.

Proceeds will be used for refinancing and working capital.

The rating on Nutritek is constrained by intense competition, limited presence in important Moscow and St. Petersburg markets, and aggressive expansion policy, S&P said. Relatively narrow production base and negative free operating cash flow generation also limit the rating.

These factors are mitigated by the rapidly growing baby food market in Russia, the company's position as Russia's largest domestic baby food manufacturer and its balanced financial policy, the agency noted.

© 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.