Fonterra credit rating cut to A- by S&P on Beingmate debt, peak capex, price volatility

Wed, 14 Oct 2015

By Jonathan Underhill Oct. 14 (BusinessDesk) - Fonterra Cooperative Group's long-term credit rating was cut by Standard & Poor's, which said its peak capital expenditure and rising debt levels had coincided with a high level of volatility in the global dairy market in fiscal 2015, weakening its financial risk profile. Fonterra's long-term rating was cut one notch to A-, while its short-term rating was lowered to A-2 from A-1. The outlook is stable. The cooperative’s cash interest costs on funding rose $95 million to $427 million in the...

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