Fitch lowers Tereos bonds

Fitch Ratings said it affirmed Tereos SCA's long-term issuer default rating at BB with a stable outlook.

The senior unsecured ratings on the bonds issued by its subsidiary Tereos Finance Groupe 1 and guaranteed by Tereos were downgraded to BB- from BB.

The ratings reflect a view that Tereos will be able to recover its profitability from the low level projected for fiscal year 2019, pressured by low world sugar prices and its inability to adjust procurement sugar beet prices in Europe for the current year, Fitch said.

The agency said it considers that the projected increase in leverage is more related to market cyclicality rather than any structural weakness of the company.

Fitch said it believes that Tereos should be able to move its French sugarbeet prices toward market levels for the 2019 planting in the European Union, which will enable it to adapt input costs to levels better aligned with the current low sugar price environment.

© 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.