Moody's downgrades Suedzucker notes

Moody's Investors Service said it placed under review for downgrade the Baa3 long-term issuer rating and the prime-3 (P-3) short-term rating of Suedzucker AG, as well as Suedzucker International Finance BV's Baa3 long-term issuer rating and the prime-3 (P-3) short-term rating.

Moody's also said it downgraded Suedzucker International Finance's junior subordinated notes to B2 from B1 and left the rating on review for downgrade.

The outlook will be changed to under review from negative.

The action follows the company's publication of its profitability guidance for fiscal year 2020, along with news that the coupon on the hybrid notes is likely to be suspended for at least one year.

The company's profitability and credit metrics are expected to remain weaker than anticipated over the next 12- to 18-months, Moody's said.

Sugar market conditions remain challenging across Europe, but the agency said anticipates a better balance between supply and demand for the sugar marketing year starting Oct. 1.

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