Moody's: Barry Callebaut

Moody's Investors Service said it placed Barry Callebaut AG's Baa3 long-term issuer rating under review for possible downgrade.

Concurrently, the agency said it placed the Baa3 ratings of the combined €600 million of senior unsecured notes issued by Barry Callebaut AG's fully-owned and guaranteed subsidiary Barry Callebaut Services NV under review for possible downgrade.

The agency said this action follows the company's announcement that it has entered into a definitive agreement to acquire the Cocoa Ingredients Division of Petra Foods Ltd. for a total consideration of $950 million on a cash/debt-free basis to be financed by a bridge loan.

"Today's announcement reflects our concern that, given the significant size of the transaction, Barry Callebaut's credit metrics may remain outside of those consistent with a Baa3 rating for a protracted period of time," said Andreas Rands, a Moody's vice president - senior analyst and lead analyst for Barry Callebaut, in a news release.

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