S&P ups Tereos view to positive, rates bonds BB+

Standard & Poor's said it revised its outlook on Tereos Union de Cooperatives Agricoles a Capital Variable (Tereos) to positive from stable and affirmed the BB+ long-term corporate credit rating on the group.

S&P also affirmed its BB+ issue rating on the €500 million senior secured bond due 2014 issued by subsidiary Tereos Europe SA. The 3 recovery rating on the 2014 bond remains unchanged, indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default.

S&P said it also assigned a BB+ issue rating to Tereos' proposed senior unsecured bond. S&P said it understands the amount of this bond will be at least €350 million, with a maturity of five years or longer.

S&P also said that Tereos' finance subsidiary Tereos Finance Groupe I will issue the bond and that Tereos will guarantee it.

The agency assigned a 3 recovery rating to this proposed bond, indicating an expectation of meaningful (50%-70%) recovery in the event of a payment default.

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