Moody’s: Gloria Foods view to negative

Moody's Investors Service said it confirmed Gloria Foods Jorb SA's Baa3 ratings and changed its outlook to negative.

With this action, the agency concluded the review process started on July 20.

Moody’s said the confirmation of the Baa3 rating takes into account the company's estimates for an improved liquidity profile and better cash flow generation during 2016, following liability management initiatives and the completion of its investment cycle.

Still, the negative outlook primarily reflects the observed deterioration in Gloria Foods’ credit metrics and liquidity profile over the last few years mainly as a consequence of negative free cash flow generation and of an increase in absolute debt levels, the agency explained.

The negative outlook also incorporates the company's tight approach to short-term debt management.

Moody’s said it considers that a tight liquidity increases Gloria Foods’ exposure to refinancing risk in case of any potential external shock.

© 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.