Danone Reiterates its Sound and Continuously Improving Financial Position
DANONE would like to state that its projections have not changed but have actually improved since the last meeting that Danone conducted with Moody’s in June 2008.
10/11/08 DANONE has reiterated that the company remains solidly on track to achieve the debt reduction and credit metrics improvements within the time frame that was agreed upon with Credit Rating Agent Moody’s in November 2007.
Secondly, DANONE would like to state that its projections - based on which it will achieve the aforementioned debt reduction and improvements in credit metrics – have not changed but have actually improved since the last meeting that Danone conducted with Moody’s in June 2008.
Thirdly, DANONE would like to reconfirm that, as stated by Moody’s, the company has sufficient sources of financing available to back-up its €1.9 bn of commercial paper and to cover the outstanding put options which amount to € 2.7 bn. These sources of financing consist of € 3.8 bn of committed, undrawn credit back up lines, € 0.6 bn of cash and € 0.5 bn of treasury shares.
Lastly, it is worth mentioning that the company’s next significant debt repayment amounts to 2.3 bn and will be due in December 2010.