Moody’s raises rating of Südzucker AG

High creditworthiness of Südzucker AG affirmed

The rating agency Moody’s today raised Südzucker AG's (Südzucker) long-term rating to Baa2 (previously: Baa3) and the short-term rating to P2 (previously: P3). This strengthens Südzucker's rating within the investment grade range as a solid borrower. The rating outlook is stable.

At the same time, Moody’s has raised the so-called subordinated rating, which is decisive for the risk class of Südzucker's hybrid bond, to Ba3 (previously: B1).

Moody's attributes the improvement to the strong recovery in the company's underlying profitability in recent years, driven by very high sugar prices and favorable supply and demand dynamics in the European sugar market. The strong cash flow generation should allow the company to reduce its financial debt, which together with a stronger profit diversification will support the strong credit metrics on an ongoing basis.