S&P cuts Upfield

S&P said it downgraded Upfield (Sigma HoldCo BV) and its revolver and term loan to B- from B. The agency also lowered the rating on the subordinated unsecured notes due 2026 to CCC from CCC+.

“Last year, Upfield did not reduce adjusted leverage, which stood at 10x despite strong positive FOCF. Upfield reported revenue growth of 1.8% (at constant rates) spurred by all regions except some European markets accounting for 20% of sales–notably Germany, France, the Nordics, and eastern Europe. This was mostly due to price increases, given margarine volumes remain in decline in mature European markets,” the agency said in a press release.

Even though S&P estimates 2022’s revenue to grow 10%, the agency said it sees limited deleveraging due to pressure from soaring input costs and supply chain issues that will continue pressuring profitability.

The outlook is stable.

© 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.