Sharechat Logo

Fitch downgrades Uruguay farm trust bonds

Wednesday 5th May 2010

Text too small?

Fitch Ratings has dropped the rating on a trust used by NZX-listed New Zealand Farming Systems Uruguay (NZS) to BBB, with negative outlook, reflecting the delayed implementation of the company's development plans.

The rating is still investment grade, but a fall from the A- rating initially granted when the NZFSU 1 Financial Trust was established in July last year to raise debt for farm development.

The company issued US$30 million of long term bonds in Uruguay, secured by a combination of its milk receipts and part of the company’s land holdings.

"Fitch Ratings considers there are tangible financing alternatives for NZS to fully complete farm development and therefore maintains an overall investment grade rating," the agency said. "However the rating of BBB (Uy) Watch negative from the A- (Uy) rating announced in March 2009 reflects the delay in the implementation of the development."

NZS shares last traded yesterday at 40 cents.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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.

Related News:

NZ Farming Systems cuts FY guidance
NZ Farming Systems milk production 10% below target
NZS shareholders accept Olam takeover offer
Olam offer for NZFSU tops 50%, going unconditional
NZ Farming Systems gets Tip Top boss
Union Agriculture quits bid for Farming Systems
Olam gains consent to purchase all of NZFSU
Enhanced offer for Farming Systems wins over ACC
Olam hikes offer for Farming Systems
Wait for third-party offer: Farming Systems