Fitch revises Tereos view to stable

Fitch Ratings said it revised Tereos SCA's outlook to stable from negative and affirmed the sugar producer's long-term issuer default rating at BB-.

The agency also affirmed the senior unsecured rating of Tereos Finance Groupe 1 at B+ while its recovery rating has been revised to RR5 from RR6 and removed from under criteria observation. The recovery rating revision and the removal from UCO follow Fitch’s revised criteria published in April.

“The outlook revision reflects Fitch's expectations of operating-profit recovery from FY22 (ending March 2022), supported by volumes normalization in Europe, efficiency gains, and anticipated moderation in capex. This, together with a recovery of global sugar prices, should result in positive free cash flow (FCF) and deleveraging by FYE22 to levels that are consistent with the rating. The group has also improved its liquidity position by issuing a new €425 million bond and refinancing a large portion of its revolving credit facilities over the last 12 months,” the agency said in a press release.

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