S&P changes Royal FrieslandCampina view

S&P said it revised its outlook on Koninklijke FrieslandCampina NV (Royal FrieslandCampina) to negative from stable and affirmed its BBB+ long-term and A-2 short-term issuer credit ratings.

The agency said the revision follows the company’s release of its 2017 financial results, which showed lower operating margins at the group level than in S&P’s base-case projections.

“Profitability has been notably slashed by high milk price inflation, resulting in the group having limited leeway in the credit metrics for our assessment of its current financial risk category,” S&P said in a news release.

“This decrease in profitability is somewhat explained by the lag between the inflation of raw materials, and the effective price increase passed onto customers.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.