S&P rates Upfield loans B+, notes B-

S&P said it assigned its B+ long-term issuer credit rating to Sigma HoldCo BV (Upfield), formerly Flora Food Group, a Netherlands-based manufacturer of margarine and other plant-based nutrition products. The outlook is stable.

At the same time, S&P assigned a B+ issue rating to the €3.95 billion-equivalent floating-rate senior secured term loan maturing in 2025, as well as to the €700 million revolving credit facility maturing in 2024.

The recovery rating is 4, indicating expectations of 30%-50% recovery (rounded estimate: 45%) in the event of payment default.

The subsidiaries, Sigma Bidco BV and Sigma US Corp, are the issuers of the loan, while Sigma HoldCo BV and certain other subsidiaries are guarantors.

S&P said it also assigned a B- issue rating to the €1.1 billion senior unsecured notes maturing in 2026. The recovery rating on the unsecured debt is 6, indicating an expectation of 0% recovery prospects, reflecting the subordinated nature of the notes.

“Our ratings on UPFIELD reflect our view of the company's creditworthiness following Unilever's disposal of its spreads division to KKR,” S&P said in a news release.

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