S&P cuts Fage outlook to negative

Standard & Poor's said it revised its outlook to negative from stable on Fage Dairy Industry SA.

At the same time, S&P said it affirmed its B- long-term corporate credit rating and the issue rating on the company's €130 million of 7.5% senior unsecured notes due 2015.

The outlook revision reflects the €5.4 million operating loss Fage posted in the three months ended June 2008, which marks a negative trend that it will be challenged to reverse, primarily due to the continuing competitive pressure in its core domestic market, the agency noted.

According to S&P, the ratings on Fage reflect its highly leveraged financial profile, in particular in the light of the recent volatility of earnings.

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