S&P revises Upfield view to negative

S&P said it revised the outlook for Upfield’s parent Sigma Holdco BV to negative from stable.

“The negative outlook reflects that Upfield’s credit metrics could weaken beyond the expected targets for a prolonged period. In particular, we assume that, factoring in higher-than-expected separation-related costs of €150 million-€200 million, the reported FOCF would likely remain below €200 million at end-2020, and its adjusted debt to EBITDA will approach 8x, before falling to 7x-7.5x in 2021,” S&P said in a press release.

The agency affirmed the ratings at B+.

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