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(The following statement was released by the rating agency)
Dec 06 -
-- In our view, Suedzucker AG continues to demonstrate a conservative financial policy, as shown by its recent equity-funded buyback of convertible bonds.
-- We anticipate that Suedzucker's credit metrics will improve further in fiscal 2013.
-- We are therefore revising our outlook on the company to positive from stable and affirming our 'BBB+/A-2' ratings.
-- The positive outlook reflects the potential for an upgrade if the company sustainably maintains a ratio of adjusted funds from operations to debt of more than 50% and an adjusted debt-to-EBITDA ratio closer to 1.5x, despite a potential softening of sugar prices.
On Dec. 6, 2012, Standard & Poor's Ratings Services revised its outlook on German sugar and related agro products manufacturer Suedzucker AG to positive from stable. At the same time, the 'BBB+' long-term and 'A-2' short-term corporate credit ratings were affirmed.
We also affirmed our 'BBB+' issue rating on Suedzucker's unsecured notes and our 'BB+' issue rating on the subordinated notes.