Moody's: Global Dairy notes B2

Moody's Investors Service said it assigned a B2 corporate family rating to Global Dairy Holdings Ltd., along with a provisional B2 rating to its proposed dollar-settled renminbi-denominated senior guaranteed notes.

The outlook is stable.

The proceeds will be used for investments in its upstream integration business and general corporate purposes.

The ratings reflect its success in ramping up sales of its infant milk powder products over the last three years, despite a competitive environment, Moody's said.

This success is driven by its flat distribution model, which allows for a higher level of profit-sharing with distributors and has resulted in an efficient penetration of the market, the agency said.

On the other hand, the Chinese milk powder market is highly competitive and fragmented with the presence of established foreign and other domestic brands, Moody's said.

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