S&P lowers CSM Bakery view to stable

S&P said it affirmed CSM Bakery Solutions LLC's CCC+ issuer credit rating and revised its outlook to stable from positive.

The stable outlook reflects the company's continued challenges in turning around its business after an enterprise resource planning (ERP) software issue in 2016, which led to the loss of about €100 million worth of business and negative EBITDA through the first half of 2017, S&P explained.

The company has lowered its EBITDA guidance for 2018 by about €20 million as regaining former customers at profitable levels has been slower to occur than anticipated, the agency said.

The company also reported lower earnings from its Europe business so far in 2018, S&P noted, as the summer was very warm and demand for bakery products declined.

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