S&P rates Royal FrieslandCampina BBB+

S&P said it assigned BBB+ long-term and A-2 short-term corporate credit ratings to Koninklijke FrieslandCampina NV (Royal FrieslandCampina).

The outlook is stable.

In terms of revenues, Royal FrieslandCampina is the fifth-largest global dairy group and ranks No.3 in the global dairy cooperative industry.

This value-creation proposition for its farmers is one of the group's key strengths, which underpins a business risk profile assessment, S&P said.

Like other agricultural cooperatives, Royal FrieslandCampina is vertically integrated and engaged to buy all the raw materials produced by its member farmers, the agency said.

The group provides its members with better returns than peers thanks to its milk valorization model, which includes both the processing of large quantities of milk and maximizing of its value creation products, S&P said.

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