Nestle's 'Aaa' ratings affirmed after Gerber buy - Moody's |
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Published
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Thu, 12 Apr 2007 18:10
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MUMBAI (Thomson Financial) - Moody's Investors Service has affirmed the Aaa senior long-term debt ratings of Nestle SA and guaranteed subsidiaries, on the companys acquisition of Novartis baby foods business Gerber for 5.5 bln usd.The rating affirmation and the stable outlook are supported by the expectation that Nestle will use its free cash-flow in 2007 and 2008 to pay the recently agreed acquisitions of Medical Nutrition and Gerber and rebuild credit metrics in line with the 'Aaa' category by year-end 2008, Moody's said.The acquisition of Gerber will contribute to strengthening Nestle's position in the nutrition business in particular with its leadership position in the US baby food market and also enhance organic growth and operating margins, the ratings agency said.Earlier in the day, Fitch Ratings had affirmed Nestle's 'AAA' issuer default rating with a stable outlook.tf.TFN-Europ_newsdesk@thomson.compcm/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Nestle ratings affirmed after Gerber acquisition, says Fitch 