Moody's upgrades Kerry

Moody's Investors Service said it upgraded Kerry Group plc's long-term issuer rating to Baa1 from Baa2 and the rating on the backed senior unsecured notes issued by Kerry Group Financial Services to Baa1 from Baa2.

"The rating upgrade reflects Kerry's strong track record of top-line growth while maintaining stable margins, positive free cash flow and a prudent financial policy that translates into solid credit metrics," said Paolo Leschiutta, a Moody's senior vice president and lead analyst for Kerry, in a press release.

"Although the current challenging macroeconomic environment somewhat reduces visibility on Kerry's near-term operating performance, we derive comfort from the company's demonstrated resilience to downcycles. We expect the company to continue to pass through higher costs to customers without affecting volumes and to target mainly bolt-on acquisitions with only temporary increases in leverage in case of larger debt-financed deals," added Leschiutta.

The outlook remains stable.

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