Dairy company Koninklijke FrieslandCampina N.V. (RFC) reported lower-than-anticipated operating margins in 2017, owing to historically high milk costs. This translated into S&P Global Ratings' adjusted debt to EBTIDA above 3.5x at year-end 2017, which leaves RFC with reduced headroom in its credit metrics for the current rating. We are therefore revising our outlook on RFC to negative from stable, and affirming our 'BBB+/A-2' ratings on the group. The negative outlook reflects our view that there is at least a one-in-three likelihood that we will downgrade RFC over the next 12-24 months, if it is unable to restore its credit metrics, notably if adjusted debt to EBITDA remains above 3.5x. On April 25, 2018, S&P Global Ratings revised its outlook on
