Paris, May 5, 2015 (AFP) – Standard and Poor’s rating agency downgraded Tuesday note of Tereos, the first French sugar, from BB + to BB, due to low sugar prices, but matches a stable outlook.
“ The profitability of Tereos and its ability to generate cash are likely to remain low during the next 12 months, mainly because European prices as world sugar and ethanol, its main products, not will rebound significantly during this period ” indicates the rating agency in a statement Tuesday.
The price of ethanol in Europe “should remain low due to the low cost of oil, one euro weak and limited initiatives of the European Commission to stimulate demand, “said S & amp;. P
In Brazil, the” price of ethanol were supported by recent government measures, despite the economic recession. However, poor weather conditions in Brazil’s largest sugarcane cultivation basin could reduce production, “further emphasizes S & amp; P
But the rating agency matches the downgrade of. 5th World sugar producer with a stable outlook because “Tereos cash generation could stabilize over the next 12 months.”
Tereos, which employs 24,000 people worldwide, takes a quarter of its Sales in Brazil, where it is the third producer of sugar, with eight plants.
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