Moody's: Agrokor to stable

Moody's Investors Service said it changed the outlook on Agrokor DD to stable from positive.

Moody's also said it affirmed the company's B2 ratings.

The outlook change reflects the company's headroom under its bank covenants, which has not improved as expected when the positive outlook was assigned in December 2010, the agency said.

While Moody's said it recognizes the significant improvements made over recent years to improve Agrokor's debt maturity profile, the change in outlook also reflects the company's short-term indebtedness.

The ratings are supported by its leading retail market positions in Croatia, Bosnia and Herzegovina and Serbia, as well as in its key food and beverage product categories, the agency said.

The rating is constrained by the company's financial policy and lack of deleveraging over the last couple of years, Moody's said.

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