S&P elevates Bright Food

S&P said it raised its long-term issuer credit rating on Bright Food (Group) Co. Ltd. to BBB from BBB-. The outlook is stable.

S&P also raised its long-term issue rating on the euro-denominated senior unsecured notes the company guarantees to BBB from BBB-. Bright Food Singapore Holdings Pte. Ltd. issued the notes.

Bright Food is a China-based food conglomerate and is ultimately wholly owned by the Shanghai municipal government, through Shanghai State-owned Assets Supervision and Administration Commission.

“We upgraded Bright Food because we expect the company to sustain its improved debt servicing ability over the next 12-24 months, largely due to more disciplined capital investments and better operating efficiency,” S&P said in a news release.

“We expect Bright Food's debt leverage, as measured by the debt-to-EBITDA ratio, to stabilize at 6.5x-7.5x and EBITDA interest coverage to sustain above 2.5x in 2018 and 2019.”

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