Fitch trims Upfield to B

Fitch Ratings said it downgraded Sigma Holdco BV’s (Upfield) long-term issuer default rating to B from B+. Fitch also downgraded the senior secured facilities issued by Upfield US Corp. and Upfield BV to B+/RR3 from BB-/RR3 and the senior unsecured notes rating to CCC+/RR6 from B-/RR6.

“The downgrade reflects our revised expectations on Upfield’s deleveraging trajectory given higher-than-projected one-off costs and working capital outflows related to its separation from Unilever plc. We now assume that Upfield is unlikely to reduce its leverage to levels commensurate with a B+ rating following its largely debt-funded acquisition of Arivia and high incurred separation-related cash outflows,” Fitch said in a press release.

The outlook is stable.

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