Moody's may cut Tereos ratings

Moody's Investors Service said it placed Tereos SA's (formerly known as Beghin-Say) Ba1 senior implied and Ba3 senior unsecured long-term ratings under review for possible downgrade reflecting the agency's view that the challenging market conditions prevailing in its sugar markets may impact its credit profile.

Placed on review were the Ba1 senior implied rating and the Ba3 senior unsecured rating for euro medium term note program outstanding drawdown.

Moody's said the review will focus on the impact on the operating performance of Tereos of the generally more competitive market conditions in its markets, as well as of the lower sugar world prices and weaker U.S. dollar versus the euro, which affects the profitability of sales not benefiting from the protection of the European sugar regime.

The review also will focus on the evolution of credit metrics going forward and the headroom under the existing bank financial covenants.

© 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.