Moody's lifts Barry Callebaut from junk

Moody's Investors Service said it assigned a Baa3 issuer rating to Barry Callebaut AG, and upgraded the rating on its €350 million 2017 senior unsecured notes to Baa3.

The outlook is stable.

Moody's said it will withdraw the company's corporate family rating and probability of default rating due to its transition from speculative grade to investment grade.

The upgrade reflects the company's track record of relatively stable operating performance in spite of volatile cocoa prices and challenging economic conditions, the agency said.

The ratings are supported by the company's established presence in all major global markets and the company's focus on diversifying its revenues from Europe with new markets such as Russia, Brazil, China and India, which typically display higher growth prospects, Moody's said.

The rating also reflects the resilience of its hedging policy to volatile cocoa beans prices, the agency said.

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