Moody’s raises FAGE, notes to B2

Moody's Investors Service said it upgraded FAGE International SA’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

Concurrently, the agency upgraded the rating of $400 million unsecured notes due 2020 jointly issued by FAGE and FAGE USA Dairy Industry Inc., a subsidiary of FAGE, to B2 from B3.

The outlook on all ratings is stable.

Moody’s said the action reflects the strong improvement in FAGE's financial and credit metrics supported by continued growth in its markets outside of Greece. Moody's adjusted LTM September 2015 debt / EBITDA stood at 2.6 times whereas LTM EBIT margin increased to 19% and free cash flow turned positive.

The upgrade also reflects an expectation that FAGE's metrics will remain strong for its rating category, despite the remaining exposure to the economic situation in Greece and a potential increase in milk prices, the agency said.

© 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.