13th Sep 2019 17:06
(Alliance News) - Moody's Investor Service on Friday assigned a Baa2 senior unsecured rating to the senior notes set to be issued by Kerry Financial Services.
Moody's said the rating reflects the firm's "global leading position in the ingredients and flavours market" and "the stable nature of the sector, which Moody's expects to continue to grow in the low- to mid-single-digit range in percentage terms".
Additional factors in the rating were Richmond sausage maker Kerry's "additional earnings diversification through the Consumer Foods segment" and "strong credit metrics".
The ratings agency did, however, say that Kerry's "acquisitive strategy" and "moderate geographical diversification" constrained the bond rating.
Moody's said Kerry's outlook was Stable, as the company "is well positioned within its rating category and has some headroom to accommodate additional debt-funded non-transformational acquisitions", although its "rating is constrained by" its mergers and acquisitions activity.
Shares in Kerry closed down 2.8% at EUR105.00 on Friday.