S&P upgrades Suedzucker, debt

S&P said it raised the long- and short-term corporate credit ratings on Suedzucker AG to BBB/A-2 from BBB-/A-3.

The outlook is stable.

The agency also upgraded the issue rating on Suedzucker's senior unsecured notes to BBB from BBB-, and the rating on the €700 million hybrid bond, both issued by Suedzucker International Finance BV to BB- from B+.

S&P said the upgrade reflects firstly its view that Suedzucker's improved operating performance in the financial year (ending February 2017) 2016/2017 led to stable cash flow generation and improved credit metrics.

Adjusted debt/EBITDA decreased to 2.3 times (compared with 3.1 times in the previous year) and funds from operations (FFO) to debt rose to 37% while free operating cash flow (FOCF) debt was stable at close to 15%.

Secondly, the agency said it believes that the rebound in operating performance should continue, although more gradually, over the next two years.

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