Moody's: Tereos view negative

Moody's Investors Service said it changed to negative from stable the outlook on Tereos's Ba2 corporate family and probability-of-default ratings as well as on the Ba3 senior notes rating.

The action was prompted by Tereos's higher-than-expected leverage at the end of 2007 fiscal year and Moody's concerns that the company may not be able to reach the credit metric targets set at the time of the initial rating assignment with a debt-to-EBITDA ratio of about 3.5 times, according to the agency.

The Ba2 corporate family rating continues to reflect Tereos's leadership positions in Europe, its strong brands and the additional diversification provided by the cane sugar, the alcohol and ethanol segments, the agency said.

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