Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sunny Delight Beverages Co. > News item |
Moody's downgrades Sunny Delight
Moody's Investors Service said it downgraded Sunny Delight Beverages Co.'s corporate family rating to B2 from B1, its 30 million first-lien revolver due 2009 to B2 from B1 and its $105 million first-lien term loan due 2010 to B2 from B1.
The outlook is negative, reflecting the potential for continued weakening over the near to intermediate term as a result of high raw material and energy prices coupled with ongoing business challenges in Europe, the agency said.
The downgrade reflects the material shortfall in operating profit and cash flow generation the company has experienced in 2005, pressure on financial flexibility and the company's liquidity profile.
Despite significant debt reduction in June 2005 after the sale of Punica Getranke GmbH, the company's credit metrics have not improved in line with original expectations, Moody's said, due mainly to higher-than-expected packaging and freight costs in North America during the latter half of 2005 and higher fixed costs and lower volumes in Europe.
© 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.