Koninklijke FrieslandCampin Outlook To Stable From Neg On Upcoming Capital Contribution From Its Parent; Rtgs Affirmed

Thanks to implementation of a new member financing framework at the parent level (Zuivelcoöperatie FrieslandCampina U.A.), dairy cooperative group Koninklijke FrieslandCampina (Royal FrieslandCampina or RFC) will receive an equity injection of close to €800 million in January 2022 that will allow the company to reduce its debt burden. We expect RFC will post debt to EBITDA of 3.5x-4.5x in the next 12-24 month, which is lower than we previously anticipated and clearly supports the current 'BBB' rating, even in the event of further operating setbacks. We revised the outlook on RFC to stable from negative, and affirmed the 'BBB/A-2' ratings. The stable outlook indicates that, thanks to this cash contribution, RFC will be able to lower its overall debt notably

...June 25, 2021 - Thanks to implementation of a new member financing framework at the parent level (Zuivelco÷peratie FrieslandCampina U.A.), dairy cooperative group Koninklijke FrieslandCampina (Royal FrieslandCampina or RFC) will receive an equity injection of close to 800 million in January 2022 that will allow the company to reduce its debt burden. - We expect RFC will post debt to EBITDA of 3.5x-4.5x in the next 12-24 month, which is lower than we previously anticipated and clearly supports the current '###' rating, even in the event of further operating setbacks. - We revised the outlook on RFC to stable from negative, and affirmed the '###/A-2' ratings. - The stable outlook indicates that, thanks to this cash contribution, RFC will be able to lower its overall debt notably by redeeming an important share of member bonds we treat as debt under our criteria. PARIS (S&P Global Ratings) June 25, 2021--S&P Global Ratings today took the rating actions listed above. The Members Council Of...

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