The rating agency Standard & Poor's (S&P) raised Südzucker AG's (Südzucker) long-term rating to BBB (previously: BBB-) and the short-term rating to A2 (previously: A3). This strengthens Südzucker's rating within the investment grade range as a solid borrower. The rating out-look is stable.
At the same time, S&P has raised the so-called subordinated rating, which is decisive for the risk class of Südzucker's hybrid bond, to BB- (previously: B+).
"We are very pleased about the improved rating, because it essentially confirms Südzucker's consistent, continuous and reliable financial policy - and it is a confirmation of our work in recent years,” says CFO Thomas Kölbl, who will retire at the end of the month. “With the improved rating, S&P recognizes the significant improvement in the relevant financial ratios for the fifth year in a row and the high creditworthiness. It will also further enhance Südzucker's already historically very good reputation on the capital market.”
S&P attributes the improvement in particular to Südzucker's ability to maintain its currently strong credit metrics in a somewhat normalizing sugar market environment. Südzucker is benefiting especially from its diversification strategy and the restructuring of the sugar segment.