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Wednesday 5th May 2010 |
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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.
Businesswire.co.nz
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