...There should only be a mild impact on the credit profile of global EMEA-based consumer companies from the COVID-19 virus outbreak in China, Fitch Ratings says. Fitch conducted a sensitivity analysis for eight global fast-moving consumer goods (FMCG) companies to assess the effect of six-to- 12-month periods of lower revenue from China. We concluded that this would have a limited impact on the credit profiles of Nestle SA (A+/Stable), Unilever PLC (A/Stable), L'Oreal S.A., Diageo plc (A-/Stable), Pernod Ricard S.A. (BBB+/Stable), Carlsberg Breweries A/S (BBB+/Stable) and Anheuser Busch InBev NV/SA (ABI; BBB/Positive). At the same time, potential pressure on the operating performance of Royal FrieslandCampina NV (RFC; BBB+/Negative) in China, one of its biggest markets, may increase execution risk related to the implementation of its turnaround strategy in the country, and delay deleveraging to levels compatible with its current rating ....
