Fitch shifts Tereos view to negative

Fitch Ratings said it revised the outlook on Tereos SCA long-term issuer default rating to negative from stable and affirmed the IDR at BB-. The senior unsecured ratings of the bonds issued by its subsidiary Tereos Finance Groupe 1 were also affirmed at B+.

The outlook revision reflects the risk leverage will only gradually recover over financial years to March 2021-2022. “We also expect its negative free cash flow will worsen in 2020, due to persistently low sugar prices and continued investment efforts. This could impact the group’s ability to absorb further shocks in a volatile commodity industry,” said Fitch in a press release.

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