Standard & Poor’s Upgrades Tereos Ratings
Standard & Poor's rating upgrade underscores the pertinence of Tereos' strategy (strong sugar beet positions in Europe, diversification into sugarcane and cereal production and international expansion), the group's strong operational momentum and its capacity to maintain a solid balance sheet while making reasonable investments to pursue growth.
11 May 2012 --- The rating agency Standard & Poor’s raised its long-term corporate rating on the Tereos group to "BB+" from "BB" with a stable outlook. The rating upgrade also applies to the €500m bond issued by Tereos in 2007.
Standard & Poor’s based its rating upgrade on the following factors:
• ?Tereos has the capacity to maintain strong operating performances in fiscal 2012 and 2013.
• ?With its moderate financial policy, the group will maintain a satisfactory debt ratio.
• ?The earnings outlook for sugar beet production in Europe is positive thanks to a good harvest and
favourable market conditions.
• ?Diversification by region (Brazil, China) and business line (sugarcane, cereal) will have a positive
impact on operating income.
Standard & Poor's rating upgrade underscores the pertinence of Tereos' strategy (strong sugar beet positions in Europe, diversification into sugarcane and cereal production and international expansion), the group's strong operational momentum and its capacity to maintain a solid balance sheet while making reasonable investments to pursue growth.
Tereos is a cooperative agro-industrial group that specialises in the primary processing of sugar beet, sugarcane and cereals. The Tereos Group has expanded considerably over the past twenty years, increasing its total production of sugar, starch and alcohol by a factor of 50. With 39 production sites and 26,500 employees, Tereos reported 2011 revenue of €4.4 billion. Tereos holds leading positions in three core business lines: sugar (4th worldwide, 1st in France and the Czech Republic, 3rd in Brazil), alcohol & ethanol (1st in Europe, 3rd in Brazil) and starch (3rd in Europe).
