Fitch gives Fonterra thumbs up over unchanged farmgate payout, dividend cut

Tue, 17 Dec 2013

By Paul McBeth Dec. 18 (BusinessDesk) - Fitch Ratings has praised Fonterra Cooperative Group’s decision to hold the forecast payout to farmers and slashing its dividend by two-thirds amid a growing gap in prices between milk powders and its cheese and casein products. The Auckland-based company’s decision is “characteristic of the fiscal discipline that underscores its credit rating,” Fitch said in a statement. Fonterra has an AA rating. Earlier this month the cooperative surprised analysts by holding the forecast payout for this season at...

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