S&P lowers Royal FrieslandCampina

S&P said it lowered Koninklijke FrieslandCampina NV (Royal FrieslandCampina) to BBB from BBB+.

The downgrades follow the company's weaker operating results than anticipated in 2018 in the context of high milk prices, S&P said, and its obligations to cooperative members to commercialize high milk volumes.

The downgrades also reflect the competitive pressures in Asian markets for infant formula, the agency said.

The negative outlook reflects anticipation that the company's profitability might be lower than the base-case assumptions in the next two years if market trends are negative, S&P added.

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