S&P keeps eye on Fonterra's credit
By 3 News online staff
Fonterra's credit rating has been put on negative credit watch.
Standard and Poor's says the decision reflects the weakening global dairy market.
Chief financial officer Lukas Paravicini says it has taken proactive steps to maintain its financial strength and continue to remain financially prudent.
The co-operative has reviewed its capital expenditure for the next two years and is now targeting a spend of $500million - $600million less for 2016 financial year compared to the year.
"These measures reinforce our sound financial position and are enabling us to provide support to our farmers during this difficult period of low global dairy prices."
"While current global prices are unsustainably low, we take a longer term view of the cyclical nature of the international dairy market and have confidence in the fundamentals for dairy," he says.
Mr Paravicini says the cooperative's current debt levels are in line with expectations.
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