S&P cuts Upfield

S&P said trimmed its ratings for Upfield (Sigma HoldCo BV), its €700 million revolver and its €4.325 billion term loan due 2025 to B from B+. The agency also lowered Upfield’s €1.075 billion of unsecured notes due 2026 to CCC+ from B-.

S&P noted Upfield reported negative free operating cash flow in 2020, translating into a significant increase in S&P Global Ratings-adjusted debt to EBITDA to almost 10.5x at year-end 2020.

“Upfield has deviated from our expected deleveraging trajectory, and we now forecast leverage will only slightly reduce in 2021 to 9x-9.5x, given separation-related expenses and nonrecurring costs will continue to weigh on FOCF generation,” the agency said in a press release.

The outlook is stable.

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