Fonterra bonds given ratings in line with parent company

Ratings agency Standard and Poor’s has assigned a rating of A+ for the bonds issued by Fonterra’s Australian subsidiary in the wake of a $A300 million ($NZ388.3 million) issue of corporate bonds.

The bonds are for a five year term, maturing in July 2016, and were priced at a spread of 100 basis points over the Australian five-year swap rate.

Another agency, Fitch, has given the bonds an AA-minus rating.

Both ratings agencies ranked the bond in line with their respective ratings for Fonterra Co-operative Group Ltd which guaranteed the issue.

The company has tagged the cash for refinancing bank debt in Australia.

The Australian bond issue followed Fonterra's sale of bonds on the Chinese currency bond market, raising 300 million yuan ($NZ56m) through an issue of RMB-denominated bonds.

NZPA

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

July 4th Morning Report
July 3rd Morning Report
ikeGPS Chief Financial Officer Transition
TWL - TradeWindow announces strategic partnership with FTA
BLT - Patent issue settled and new 5 year agreement with BSP
July 2nd Morning Report
July 1st Morning Report
June 27th Morning Report
SDL - FY2026 Earnings Guidance
PaySauce Director resigns for US-based role with NZTE