21 Oct 2015
Fitch lowers Fonterra’s credit rating, outlook stable
FXStreet (Mumbai) - The rating agency Fitch lowered Fonterra’s senior unsecured rating and long-term issuer default rating to A from AA-.
The subordinated debt rating was revised down to A- from A+. The rating agency kept its outlook stable. The New Zealand’s biggest company and dairy exporter have come under fire due to falling milk prices.
Milk prices fell at the latest Global Dairy Trade auction. Average prices paid at the auction fell 3.1% on the last event held three weeks previously which itself was up 9.9%. Fonterra’s milk collection across New Zealand in September was 8.7% lower than September last year and for the four months to September 30, it was 5% behind the same time last year.
The subordinated debt rating was revised down to A- from A+. The rating agency kept its outlook stable. The New Zealand’s biggest company and dairy exporter have come under fire due to falling milk prices.
Milk prices fell at the latest Global Dairy Trade auction. Average prices paid at the auction fell 3.1% on the last event held three weeks previously which itself was up 9.9%. Fonterra’s milk collection across New Zealand in September was 8.7% lower than September last year and for the four months to September 30, it was 5% behind the same time last year.