S&P cuts Bakkavor

Standard & Poor's said it lowered its long-term corporate credit rating on Bakkavor Group ehf to B- from B.

At the same time, the agency said it lowered to its issue rating on Bakkavor's £350 million 8¼% senior secured notes due 2018 to B- from B. The recovery rating on the notes is unchanged at 4.

The downgrade reflects S&P's view that, like many U.K. food manufacturers, Bakkavor continues to face sluggish consumer demand in its core U.K. market, persistently high raw material prices and high price sensitivity among retailers.

S&P said it believes that prevailing macroeconomic conditions will continue to constrain Bakkavor's operating performance and will prevent a significant improvement in the company's profitability over the medium term.

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